US economic data has once again proved to be a market mover in all the wrong ways for the dollar. April CPI came out weaker than expected at 0.3% month-on-month, and other numbers underscored a potential soft landing in the making as Retail Sales were flat and New York Area manufacturing dipped further. Ahead we…
Overview The April US Consumer Price Index (CPI) report revealed a softer-than-expected inflation rate, increasing by 0.3% for the month and registering a 3.4% year-over-year increase, slightly below market expectations. Core CPI, excluding volatile food and energy costs, also rose by 0.3%, showing a slight deceleration from the previous month’s 0.4% increase. This report, coupled…
The safe haven angle for trading gold continue to stay in the back seat our bounce yesterday largely a technical affair. Ahead we have a catalyst for potentially clearing the descending triangle hypotenuse or getting a rejection with US Consumer Price Index on the card at 1230GMT. Any sign of prolonged inflation pressures will make…
Financial markets these days appear to be inured already with the violence we see globally that unless actual supply disruptions appear traders and investors will just shrugged it off. Tuesday saw oil prices dropping to its two week consolidation lows though absent any fresh angle from supply and demand we do not expect a further…
We normally do not cover AUDUSD but the combination of yesterdays bounce and Australian Wage Price Index at 0130GMT is very interesting. Consensus forecast for WPI is at 0.9% quarter-on-quarter and should we push above it justifies a pop higher in the charts. Consider that unlike other central banks where the calls are for an…
We were surprised by Cable’s ability to hold on to gains and the extent of yesterdays move given the lack of impetus. Ahead we have numbers from both the UK and the US though of immediate concern for us will be the Claimant Count Change data at 0600GMT as a strong read here and hints…
Today’s calendar looks interesting as we have an ongoing Economic and Finance Ministers meeting all day and the release of EU Economic Forecasts. That said all eyes will likely be in the US with Fed Chairman Powell set to speak and a precursor to tomorrow’s CPI set for release. We have month-on-month producer prices index…
There is little in the way of fresh catalyst driving bitcoin as much of the issues surrounding the grand daddy of crypto currencies has been discussed and rehashed. The next big swing up would likely need a Fed inspiration, i.e. surpise rate cut this June. The more likely scenario of prolonged policy rates at current…
Gold continues to ignore geopolitical tensions and remain focused on the US Interest Rate story. Fed speak for the most part continue to suggest a rate cut later rather than sooner which has been weighing on Gold’s potential upside. Note that market players are always thinking ahead and are looking for an easing to rekindle…
Oil prices continue to ignore the Middle East conflict and will likely continue to as long as it remains localized in Gaza, and against Hezbollah in Southern Lebanon. For now the primary concern for the market is demand and a narrative of delays in US easing is keeping prices vulnerable along with economic weakness in…