First, allow me to confess: I wasn’t expecting to write this article about EURUSD parity so soon.

When I published my Q3 outlook a couple of weeks ago, there was a 72.5% chance that EURUSD would hit 1.000 sometime this quarter.

Even with such elevated odds back then, I still thought this post-parity article wouldn’t be due for another few weeks.

The past few weeks have been rough for gold.

After securing a solid weekly close below the $1825 level back in late June, bears were injected with fresh inspiration as various fundamental forces fuelled the downside momentum. The precious metal is down almost 4% this month with prices trading at levels not seen since September 2021!

Inflation.

You’re probably sick of hearing about it, and likelier still to be sick of living with it.

But that doesn’t mean that markets will ignore it.

News that Boris Johnson has resigned as UK Prime Minister offered scant relief for the British Pound.

Though climbing some 0.4% at the time of writing, GBPUSD is straining to hang on to the psychologically-important 1.20 level.

Today’s bounce could be down to some price action surrounding the rumour and the fact, noting that expectations surrounding Johnson’s resignation had been bubbling for some time now.

The mighty dollar reigned supreme during the first half of 2022, asserting its dominance over all G10 currencies.

Market chaos reigned throughout the first half of 2022. Bond yields, oil prices and the US dollar soared to levels not seen in over a decade, while the S&P 500 experienced its worst first half of the year since 1970.

But that doesn’t mean market volatility is now done and over with.

For Q3, investors and traders worldwide are set to continue obsessing about similar themes that have rocked markets so far in 2022:

• Inflation
• Rate hikes (or the lack thereof) by major central banks
• Recession risks and how it impacts Wall Street earnings

US stock futures have perked up this morning on news that China will cut its quarantine time on foreign travellers. This comes as Wall Street pared gains after initially rising from stronger-than-expected US durable goods data.

Meanwhile, there’s more action in the oil markets as crude extends its recent gains on supply disruptions.