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CFDs come with a high risk of losing money rapidly due to leverage. 71% of accounts lose money when trading CFDs with this provider. You should understand how CFDs work and consider if you can take the risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

71% of retail investor accounts lose money when trading CFDs with this provider.

Market Insights

Trading Insights: Trading the “inflation trade”

Copy of Blog Images - Skilling - 2023-07-10T102322.417

Screenshot 2023-07-10 102645
Source: TradingView July 10th 2023 6:36 UTC


Market Commentary

Trader focus will be on the US inflation data for June that is due to be released on Wednesday.

Could the recent USD weakness be a sign that USD FX traders are confident that US inflation will continue to trend lower?

Screenshot 2023-07-10 102718

The above chart illustrates the US dollar weakness seen during the last 5 days of trading.

While this week's key economic data calendar will focus on US inflation, trader focus could look towards last week's commodities price moves.

US Inflation data due at 12:30 UTC on Wednesday:

*Core US consumer price index (CPI) year on year is forecasted to have fallen 0.3%, from 5.3% to 5% during the month of June 2023.

Source: Tradingview July 10 2023 8:50 UTC

Screenshot 2023-07-10 102850
5 day percentage moves - source Tradingview

Speculation that commodities moved higher last week on the back of a weaker USD?

Recent USD weakness may have triggered an increase in speculation that USD-sensitive commodities could see an increase in demand as non-USD based physical commodities traders stock up on commodities priced in USD.

Do you have an opinion on where financial markets are heading? Express your opinion and trade with CFDs.


Today’s economic calendar

Screenshot 2023-07-10 102910
Source: TradingView / J. Knobel July 10 2023 6:30 UTC


Trading insights & strategy

Germany 40 (DAX Index) trading above key support

Current price €15,587 Provided price remains above its 40 week (200 day) moving average, as well as above key support near 15,420, the prospects for a further extension of the prevailing multi-month uptrend can not be ruled out. Upside extension over the medium term (25-49 days) could be towards the 17,170s, while downside risk below the 15,420s could place the lower support near 13,940s in view.

Screenshot 2023-07-10 102943

Not investment advice. Past performance does not guarantee or predict future performance.