Whats Moving The Markets？

Author – Connor Woods, Senior Market Analyst

Date: August 11th

This week all eyes the attention has shifted to critical news events coming out of the UK and US. Read our week ahead article today and find out Connor Woods‘ opinion on this week’s events.

UK Inflation Hits 40-Year High

Yesterday, news broke out that the United Kingdom inflation hit a new 40-year high, exceeding 10%! Higher food and energy costs have meant double-digit inflation is here, 2 months earlier than anticipated. This means the 13% prediction for October could now be higher...

The three areas of extreme concern in the UK are:

- Highest inflation since 1982.

- Highest tax in 70 years.

- The biggest drop in living standards since 1956.

The Bank of England has a crisis on its hands, and it will take a long time to improve the situation.

US Indices Looking Vulnerable

In the main event of the week, the Federal Reserve released its meeting minutes, and it was a real mixed bag! Federal Reserve officials highlighted the fact inflationary pressures were not easing last month and reiterated its commitment to fighting inflation. On the other hand, the Fed voiced its concern about ‘over-tightening’ financial conditions. In short, there was something there for every-body in these minutes.

The VIX chart is something that must be monitored closely now. It measures the volatility of the markets and at the moment is consolidating at around 23.5. If the VIX forms a base here and starts to turn up as economic conditions deteriorate, then this could leave stocks vulnerable to significant downside price momentum.

Everyone at Zenfinex wishes you the best trading week. If you would like to know more about the products we offer, feel free to visit www.zenfinex.com.

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