The Australian dollar rose to nearly $0.67 on a hot CPI inflation reading

Posted on by Vrasidas Neofytou

While the Royal Bank of Australia has not explicitly mentioned the possibility of a rate hike, it did strike a more hawkish tone than markets were expecting at a meeting last week, dragging AUD higher across the board.

 

While the Royal Bank of Australia has not explicitly mentioned the possibility of a rate hike, it did strike a more hawkish tone than markets were expecting at a meeting last week, dragging AUD higher across the board.

 

May’s CPI reading indicated inflation is moving further away from the RBA’s 2% to 3% annual target range- a scenario that is likely to invite more hawkishness from the central bank.

While the Royal Bank of Australia has not explicitly mentioned the possibility of a rate hike, it did strike a more hawkish tone than markets were expecting at a meeting last week, dragging AUD higher across the board.

 

May’s CPI reading indicated inflation is moving further away from the RBA’s 2% to 3% annual target range- a scenario that is likely to invite more hawkishness from the central bank.

While the Royal Bank of Australia has not explicitly mentioned the possibility of a rate hike, it did strike a more hawkish tone than markets were expecting at a meeting last week, dragging AUD higher across the board.

 

The Aussie gained almost 0.50% against major peers as the hot inflation reading lifted expectations among investors that the RBA-Reserve Bank of Australia could potentially hike interest rates in its next monetary meeting in August.

May’s CPI reading indicated inflation is moving further away from the RBA’s 2% to 3% annual target range- a scenario that is likely to invite more hawkishness from the central bank.

While the Royal Bank of Australia has not explicitly mentioned the possibility of a rate hike, it did strike a more hawkish tone than markets were expecting at a meeting last week, dragging AUD higher across the board.

 

The Aussie gained almost 0.50% against major peers as the hot inflation reading lifted expectations among investors that the RBA-Reserve Bank of Australia could potentially hike interest rates in its next monetary meeting in August.

May’s CPI reading indicated inflation is moving further away from the RBA’s 2% to 3% annual target range- a scenario that is likely to invite more hawkishness from the central bank.

While the Royal Bank of Australia has not explicitly mentioned the possibility of a rate hike, it did strike a more hawkish tone than markets were expecting at a meeting last week, dragging AUD higher across the board.

 

The Aussie gained almost 0.50% against major peers as the hot inflation reading lifted expectations among investors that the RBA-Reserve Bank of Australia could potentially hike interest rates in its next monetary meeting in August.

May’s CPI reading indicated inflation is moving further away from the RBA’s 2% to 3% annual target range- a scenario that is likely to invite more hawkishness from the central bank.

While the Royal Bank of Australia has not explicitly mentioned the possibility of a rate hike, it did strike a more hawkish tone than markets were expecting at a meeting last week, dragging AUD higher across the board.

 

The Aussie gained almost 0.50% against major peers as the hot inflation reading lifted expectations among investors that the RBA-Reserve Bank of Australia could potentially hike interest rates in its next monetary meeting in August.

May’s CPI reading indicated inflation is moving further away from the RBA’s 2% to 3% annual target range- a scenario that is likely to invite more hawkishness from the central bank.

While the Royal Bank of Australia has not explicitly mentioned the possibility of a rate hike, it did strike a more hawkish tone than markets were expecting at a meeting last week, dragging AUD higher across the board.

 

Meanwhile, the Core CPI inflation (which excludes volatile energy and food) climbed to an annual rate of 4.4%, also its highest level in six months and up from 4.1%.

The Aussie gained almost 0.50% against major peers as the hot inflation reading lifted expectations among investors that the RBA-Reserve Bank of Australia could potentially hike interest rates in its next monetary meeting in August.

May’s CPI reading indicated inflation is moving further away from the RBA’s 2% to 3% annual target range- a scenario that is likely to invite more hawkishness from the central bank.

While the Royal Bank of Australia has not explicitly mentioned the possibility of a rate hike, it did strike a more hawkish tone than markets were expecting at a meeting last week, dragging AUD higher across the board.

 

Meanwhile, the Core CPI inflation (which excludes volatile energy and food) climbed to an annual rate of 4.4%, also its highest level in six months and up from 4.1%.

The Aussie gained almost 0.50% against major peers as the hot inflation reading lifted expectations among investors that the RBA-Reserve Bank of Australia could potentially hike interest rates in its next monetary meeting in August.

May’s CPI reading indicated inflation is moving further away from the RBA’s 2% to 3% annual target range- a scenario that is likely to invite more hawkishness from the central bank.

While the Royal Bank of Australia has not explicitly mentioned the possibility of a rate hike, it did strike a more hawkish tone than markets were expecting at a meeting last week, dragging AUD higher across the board.

 

Australian CPI inflation accelerated to a six-month high of 4% year-to-year in May, up from 3.6% in April and well above market forecasts of 3.8%. (Source: www.investing.com) 

Meanwhile, the Core CPI inflation (which excludes volatile energy and food) climbed to an annual rate of 4.4%, also its highest level in six months and up from 4.1%.

The Aussie gained almost 0.50% against major peers as the hot inflation reading lifted expectations among investors that the RBA-Reserve Bank of Australia could potentially hike interest rates in its next monetary meeting in August.

May’s CPI reading indicated inflation is moving further away from the RBA’s 2% to 3% annual target range- a scenario that is likely to invite more hawkishness from the central bank.

While the Royal Bank of Australia has not explicitly mentioned the possibility of a rate hike, it did strike a more hawkish tone than markets were expecting at a meeting last week, dragging AUD higher across the board.

 

Australian CPI inflation accelerated to a six-month high of 4% year-to-year in May, up from 3.6% in April and well above market forecasts of 3.8%. (Source: www.investing.com) 

Meanwhile, the Core CPI inflation (which excludes volatile energy and food) climbed to an annual rate of 4.4%, also its highest level in six months and up from 4.1%.

The Aussie gained almost 0.50% against major peers as the hot inflation reading lifted expectations among investors that the RBA-Reserve Bank of Australia could potentially hike interest rates in its next monetary meeting in August.

May’s CPI reading indicated inflation is moving further away from the RBA’s 2% to 3% annual target range- a scenario that is likely to invite more hawkishness from the central bank.

While the Royal Bank of Australia has not explicitly mentioned the possibility of a rate hike, it did strike a more hawkish tone than markets were expecting at a meeting last week, dragging AUD higher across the board.

 

The Australian dollar drifted higher toward the key $0.67 resistance level on Wednesday morning, tracking a surprise rise in Australian CPI inflation reading for May, which ramped up concerns over higher interest rates by the RBA.

Australian CPI inflation accelerated to a six-month high of 4% year-to-year in May, up from 3.6% in April and well above market forecasts of 3.8%. (Source: www.investing.com) 

Meanwhile, the Core CPI inflation (which excludes volatile energy and food) climbed to an annual rate of 4.4%, also its highest level in six months and up from 4.1%.

The Aussie gained almost 0.50% against major peers as the hot inflation reading lifted expectations among investors that the RBA-Reserve Bank of Australia could potentially hike interest rates in its next monetary meeting in August.

May’s CPI reading indicated inflation is moving further away from the RBA’s 2% to 3% annual target range- a scenario that is likely to invite more hawkishness from the central bank.

While the Royal Bank of Australia has not explicitly mentioned the possibility of a rate hike, it did strike a more hawkish tone than markets were expecting at a meeting last week, dragging AUD higher across the board.

 

Euro plunged to $1.0740 after France’s Macron called snap election

Posted on by Vrasidas Neofytou

 

 

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

Investors are concerned about the risk of interventionist economic policies and stronger regulation from France’s far-right National Rally party.

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

Investors are concerned about the risk of interventionist economic policies and stronger regulation from France’s far-right National Rally party.

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

The pan-European Stoxx 600 index closed 0.27% lower on Monday, while the French stocks were sharply lower following the election drama, with BNP Paribas and Societe Generale leading Stoxx losses, down by 7.5% and 4.7% respectively (France’s CAC 40 index was down 1.4%).

Investors are concerned about the risk of interventionist economic policies and stronger regulation from France’s far-right National Rally party.

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

The pan-European Stoxx 600 index closed 0.27% lower on Monday, while the French stocks were sharply lower following the election drama, with BNP Paribas and Societe Generale leading Stoxx losses, down by 7.5% and 4.7% respectively (France’s CAC 40 index was down 1.4%).

Investors are concerned about the risk of interventionist economic policies and stronger regulation from France’s far-right National Rally party.

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

After suffering a heavy defeat to Marine Le Pen’s far-right National Rally, French President Emmanuel Macron said he would dissolve parliament and called for a surprise parliamentary election for June 30, with a second-round vote on July 7. (Source: www.cnbc.com) 

The pan-European Stoxx 600 index closed 0.27% lower on Monday, while the French stocks were sharply lower following the election drama, with BNP Paribas and Societe Generale leading Stoxx losses, down by 7.5% and 4.7% respectively (France’s CAC 40 index was down 1.4%).

Investors are concerned about the risk of interventionist economic policies and stronger regulation from France’s far-right National Rally party.

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

After suffering a heavy defeat to Marine Le Pen’s far-right National Rally, French President Emmanuel Macron said he would dissolve parliament and called for a surprise parliamentary election for June 30, with a second-round vote on July 7. (Source: www.cnbc.com) 

The pan-European Stoxx 600 index closed 0.27% lower on Monday, while the French stocks were sharply lower following the election drama, with BNP Paribas and Societe Generale leading Stoxx losses, down by 7.5% and 4.7% respectively (France’s CAC 40 index was down 1.4%).

Investors are concerned about the risk of interventionist economic policies and stronger regulation from France’s far-right National Rally party.

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

The surging popularity of the far-right parties has also added extra pressure on European stocks, which opened much lower on Sunday night, as traders reacted to initial results from the EU Parliament elections.

After suffering a heavy defeat to Marine Le Pen’s far-right National Rally, French President Emmanuel Macron said he would dissolve parliament and called for a surprise parliamentary election for June 30, with a second-round vote on July 7. (Source: www.cnbc.com) 

The pan-European Stoxx 600 index closed 0.27% lower on Monday, while the French stocks were sharply lower following the election drama, with BNP Paribas and Societe Generale leading Stoxx losses, down by 7.5% and 4.7% respectively (France’s CAC 40 index was down 1.4%).

Investors are concerned about the risk of interventionist economic policies and stronger regulation from France’s far-right National Rally party.

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

The surging popularity of the far-right parties has also added extra pressure on European stocks, which opened much lower on Sunday night, as traders reacted to initial results from the EU Parliament elections.

After suffering a heavy defeat to Marine Le Pen’s far-right National Rally, French President Emmanuel Macron said he would dissolve parliament and called for a surprise parliamentary election for June 30, with a second-round vote on July 7. (Source: www.cnbc.com) 

The pan-European Stoxx 600 index closed 0.27% lower on Monday, while the French stocks were sharply lower following the election drama, with BNP Paribas and Societe Generale leading Stoxx losses, down by 7.5% and 4.7% respectively (France’s CAC 40 index was down 1.4%).

Investors are concerned about the risk of interventionist economic policies and stronger regulation from France’s far-right National Rally party.

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

EUR/USD, 2-hour chart

The surging popularity of the far-right parties has also added extra pressure on European stocks, which opened much lower on Sunday night, as traders reacted to initial results from the EU Parliament elections.

After suffering a heavy defeat to Marine Le Pen’s far-right National Rally, French President Emmanuel Macron said he would dissolve parliament and called for a surprise parliamentary election for June 30, with a second-round vote on July 7. (Source: www.cnbc.com) 

The pan-European Stoxx 600 index closed 0.27% lower on Monday, while the French stocks were sharply lower following the election drama, with BNP Paribas and Societe Generale leading Stoxx losses, down by 7.5% and 4.7% respectively (France’s CAC 40 index was down 1.4%).

Investors are concerned about the risk of interventionist economic policies and stronger regulation from France’s far-right National Rally party.

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

EUR/USD, 2-hour chart

The surging popularity of the far-right parties has also added extra pressure on European stocks, which opened much lower on Sunday night, as traders reacted to initial results from the EU Parliament elections.

After suffering a heavy defeat to Marine Le Pen’s far-right National Rally, French President Emmanuel Macron said he would dissolve parliament and called for a surprise parliamentary election for June 30, with a second-round vote on July 7. (Source: www.cnbc.com) 

The pan-European Stoxx 600 index closed 0.27% lower on Monday, while the French stocks were sharply lower following the election drama, with BNP Paribas and Societe Generale leading Stoxx losses, down by 7.5% and 4.7% respectively (France’s CAC 40 index was down 1.4%).

Investors are concerned about the risk of interventionist economic policies and stronger regulation from France’s far-right National Rally party.

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

EUR/USD, 2-hour chart

The surging popularity of the far-right parties has also added extra pressure on European stocks, which opened much lower on Sunday night, as traders reacted to initial results from the EU Parliament elections.

After suffering a heavy defeat to Marine Le Pen’s far-right National Rally, French President Emmanuel Macron said he would dissolve parliament and called for a surprise parliamentary election for June 30, with a second-round vote on July 7. (Source: www.cnbc.com) 

The pan-European Stoxx 600 index closed 0.27% lower on Monday, while the French stocks were sharply lower following the election drama, with BNP Paribas and Societe Generale leading Stoxx losses, down by 7.5% and 4.7% respectively (France’s CAC 40 index was down 1.4%).

Investors are concerned about the risk of interventionist economic policies and stronger regulation from France’s far-right National Rally party.

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

The renewed uncertainty over the new political landscape in the European Parliament and the political scenario in France undermined the Euro, dragging EUR/USD 0.50% lower to trade as low as 1.0740 during the first two trading days of the week.

EUR/USD, 2-hour chart

The surging popularity of the far-right parties has also added extra pressure on European stocks, which opened much lower on Sunday night, as traders reacted to initial results from the EU Parliament elections.

After suffering a heavy defeat to Marine Le Pen’s far-right National Rally, French President Emmanuel Macron said he would dissolve parliament and called for a surprise parliamentary election for June 30, with a second-round vote on July 7. (Source: www.cnbc.com) 

The pan-European Stoxx 600 index closed 0.27% lower on Monday, while the French stocks were sharply lower following the election drama, with BNP Paribas and Societe Generale leading Stoxx losses, down by 7.5% and 4.7% respectively (France’s CAC 40 index was down 1.4%).

Investors are concerned about the risk of interventionist economic policies and stronger regulation from France’s far-right National Rally party.

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

The renewed uncertainty over the new political landscape in the European Parliament and the political scenario in France undermined the Euro, dragging EUR/USD 0.50% lower to trade as low as 1.0740 during the first two trading days of the week.

EUR/USD, 2-hour chart

The surging popularity of the far-right parties has also added extra pressure on European stocks, which opened much lower on Sunday night, as traders reacted to initial results from the EU Parliament elections.

After suffering a heavy defeat to Marine Le Pen’s far-right National Rally, French President Emmanuel Macron said he would dissolve parliament and called for a surprise parliamentary election for June 30, with a second-round vote on July 7. (Source: www.cnbc.com) 

The pan-European Stoxx 600 index closed 0.27% lower on Monday, while the French stocks were sharply lower following the election drama, with BNP Paribas and Societe Generale leading Stoxx losses, down by 7.5% and 4.7% respectively (France’s CAC 40 index was down 1.4%).

Investors are concerned about the risk of interventionist economic policies and stronger regulation from France’s far-right National Rally party.

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

The common currency plunged to $1.0740 on Tuesday morning following the worrying results of the European Parliament elections on Sunday, where the center-right parties, far-right, and populists made major gains, together with the surprisingly French snap elections.

The renewed uncertainty over the new political landscape in the European Parliament and the political scenario in France undermined the Euro, dragging EUR/USD 0.50% lower to trade as low as 1.0740 during the first two trading days of the week.

EUR/USD, 2-hour chart

The surging popularity of the far-right parties has also added extra pressure on European stocks, which opened much lower on Sunday night, as traders reacted to initial results from the EU Parliament elections.

After suffering a heavy defeat to Marine Le Pen’s far-right National Rally, French President Emmanuel Macron said he would dissolve parliament and called for a surprise parliamentary election for June 30, with a second-round vote on July 7. (Source: www.cnbc.com) 

The pan-European Stoxx 600 index closed 0.27% lower on Monday, while the French stocks were sharply lower following the election drama, with BNP Paribas and Societe Generale leading Stoxx losses, down by 7.5% and 4.7% respectively (France’s CAC 40 index was down 1.4%).

Investors are concerned about the risk of interventionist economic policies and stronger regulation from France’s far-right National Rally party.

Adding to the above, the German Chancellor Olaf Scholz’s Social Democrats also faced its worst-ever result on Sunday, falling to third place behind the far-right Alternative for Germany-AfD, while Germany’s opposition, the CDU (Christian Democrats), became the strongest party, with 23.7% of support. (Source: www.cnbc.com) 

The AfD became the second strongest party in Germany after clinching 15.9% of the vote, ahead of Scholz’s SPD, which won 13.9%, while the Green party’s support weakened sharply from 20.5% in 2019 to 11.9% in 2024.

Analysts appeared divided about whether a snap election could be on Germany’s horizon, in line with a step taken by Scholz’s French counterpart Emmanuel Macron.

Meanwhile, the liberal Renew Europe party and the Greens/European Free Alliance lost a significant number of seats, suggesting that the Green parties were among the biggest losers in the recent elections.

Here is the breakdown of votes for 2024 compared to the previous parliament, where it can be seen that populist, far-right parties could have a greater influence on European policymaking over the next five years.

 

Gold and Silver hit record peaks on softer inflation and geopolitics

Posted on by Vrasidas Neofytou

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

In this context, the DXY-dollar index fell to monthly lows of 104-mark last week, while the yields on the 10-year U.S. Treasury note tumbled to nearly 4.35% as traders have increased expectations of a U.S. interest rate cut this year, which is positive for the non-yielding gold and silver.

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

In this context, the DXY-dollar index fell to monthly lows of 104-mark last week, while the yields on the 10-year U.S. Treasury note tumbled to nearly 4.35% as traders have increased expectations of a U.S. interest rate cut this year, which is positive for the non-yielding gold and silver.

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

The core CPI, which strips out volatile food and energy prices, rose 0.3% versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

In this context, the DXY-dollar index fell to monthly lows of 104-mark last week, while the yields on the 10-year U.S. Treasury note tumbled to nearly 4.35% as traders have increased expectations of a U.S. interest rate cut this year, which is positive for the non-yielding gold and silver.

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

The core CPI, which strips out volatile food and energy prices, rose 0.3% versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

In this context, the DXY-dollar index fell to monthly lows of 104-mark last week, while the yields on the 10-year U.S. Treasury note tumbled to nearly 4.35% as traders have increased expectations of a U.S. interest rate cut this year, which is positive for the non-yielding gold and silver.

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

The overall CPI-consumer price index slowed to a 0.3% pace in April from 0.4% a month earlier, slower than the 0.4% pace economists had expected, boosting hopes that the disinflation trend is back on track. That took the annual figure to 3.4%, down from a 3.5% pace. (Source: www.cnbc.com)  

The core CPI, which strips out volatile food and energy prices, rose 0.3% versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

In this context, the DXY-dollar index fell to monthly lows of 104-mark last week, while the yields on the 10-year U.S. Treasury note tumbled to nearly 4.35% as traders have increased expectations of a U.S. interest rate cut this year, which is positive for the non-yielding gold and silver.

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

The overall CPI-consumer price index slowed to a 0.3% pace in April from 0.4% a month earlier, slower than the 0.4% pace economists had expected, boosting hopes that the disinflation trend is back on track. That took the annual figure to 3.4%, down from a 3.5% pace. (Source: www.cnbc.com)  

The core CPI, which strips out volatile food and energy prices, rose 0.3% versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

In this context, the DXY-dollar index fell to monthly lows of 104-mark last week, while the yields on the 10-year U.S. Treasury note tumbled to nearly 4.35% as traders have increased expectations of a U.S. interest rate cut this year, which is positive for the non-yielding gold and silver.

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

The dollar-denominated yellow metal gained over 1% and Silver advanced 1.50% at the beginning of the trading week following the softness of the dollar and bond yields, as the cooling U.S. CPI-inflation ramped up hopes the Federal Reserve will begin cutting interest rates sooner than expected, most probably in September. (Source: www.cmegroup.com)

The overall CPI-consumer price index slowed to a 0.3% pace in April from 0.4% a month earlier, slower than the 0.4% pace economists had expected, boosting hopes that the disinflation trend is back on track. That took the annual figure to 3.4%, down from a 3.5% pace. (Source: www.cnbc.com)  

The core CPI, which strips out volatile food and energy prices, rose 0.3% versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

In this context, the DXY-dollar index fell to monthly lows of 104-mark last week, while the yields on the 10-year U.S. Treasury note tumbled to nearly 4.35% as traders have increased expectations of a U.S. interest rate cut this year, which is positive for the non-yielding gold and silver.

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

The dollar-denominated yellow metal gained over 1% and Silver advanced 1.50% at the beginning of the trading week following the softness of the dollar and bond yields, as the cooling U.S. CPI-inflation ramped up hopes the Federal Reserve will begin cutting interest rates sooner than expected, most probably in September. (Source: www.cmegroup.com)

The overall CPI-consumer price index slowed to a 0.3% pace in April from 0.4% a month earlier, slower than the 0.4% pace economists had expected, boosting hopes that the disinflation trend is back on track. That took the annual figure to 3.4%, down from a 3.5% pace. (Source: www.cnbc.com)  

The core CPI, which strips out volatile food and energy prices, rose 0.3% versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

In this context, the DXY-dollar index fell to monthly lows of 104-mark last week, while the yields on the 10-year U.S. Treasury note tumbled to nearly 4.35% as traders have increased expectations of a U.S. interest rate cut this year, which is positive for the non-yielding gold and silver.

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

Gold price, Daily chart

The dollar-denominated yellow metal gained over 1% and Silver advanced 1.50% at the beginning of the trading week following the softness of the dollar and bond yields, as the cooling U.S. CPI-inflation ramped up hopes the Federal Reserve will begin cutting interest rates sooner than expected, most probably in September. (Source: www.cmegroup.com)

The overall CPI-consumer price index slowed to a 0.3% pace in April from 0.4% a month earlier, slower than the 0.4% pace economists had expected, boosting hopes that the disinflation trend is back on track. That took the annual figure to 3.4%, down from a 3.5% pace. (Source: www.cnbc.com)  

The core CPI, which strips out volatile food and energy prices, rose 0.3% versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

In this context, the DXY-dollar index fell to monthly lows of 104-mark last week, while the yields on the 10-year U.S. Treasury note tumbled to nearly 4.35% as traders have increased expectations of a U.S. interest rate cut this year, which is positive for the non-yielding gold and silver.

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

Gold price, Daily chart

The dollar-denominated yellow metal gained over 1% and Silver advanced 1.50% at the beginning of the trading week following the softness of the dollar and bond yields, as the cooling U.S. CPI-inflation ramped up hopes the Federal Reserve will begin cutting interest rates sooner than expected, most probably in September. (Source: www.cmegroup.com)

The overall CPI-consumer price index slowed to a 0.3% pace in April from 0.4% a month earlier, slower than the 0.4% pace economists had expected, boosting hopes that the disinflation trend is back on track. That took the annual figure to 3.4%, down from a 3.5% pace. (Source: www.cnbc.com)  

The core CPI, which strips out volatile food and energy prices, rose 0.3% versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

In this context, the DXY-dollar index fell to monthly lows of 104-mark last week, while the yields on the 10-year U.S. Treasury note tumbled to nearly 4.35% as traders have increased expectations of a U.S. interest rate cut this year, which is positive for the non-yielding gold and silver.

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

Gold price, Daily chart

The dollar-denominated yellow metal gained over 1% and Silver advanced 1.50% at the beginning of the trading week following the softness of the dollar and bond yields, as the cooling U.S. CPI-inflation ramped up hopes the Federal Reserve will begin cutting interest rates sooner than expected, most probably in September. (Source: www.cmegroup.com)

The overall CPI-consumer price index slowed to a 0.3% pace in April from 0.4% a month earlier, slower than the 0.4% pace economists had expected, boosting hopes that the disinflation trend is back on track. That took the annual figure to 3.4%, down from a 3.5% pace. (Source: www.cnbc.com)  

The core CPI, which strips out volatile food and energy prices, rose 0.3% versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

In this context, the DXY-dollar index fell to monthly lows of 104-mark last week, while the yields on the 10-year U.S. Treasury note tumbled to nearly 4.35% as traders have increased expectations of a U.S. interest rate cut this year, which is positive for the non-yielding gold and silver.

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

Gold hit a fresh record high of $2,440/oz on Monday morning while the price of Silver rallied to an over 11-year high of $32,30/oz, driven by the falling dollar and bond yields, the optimism over declining U.S. interest rates, and the increasing economic and political risks.

Gold price, Daily chart

The dollar-denominated yellow metal gained over 1% and Silver advanced 1.50% at the beginning of the trading week following the softness of the dollar and bond yields, as the cooling U.S. CPI-inflation ramped up hopes the Federal Reserve will begin cutting interest rates sooner than expected, most probably in September. (Source: www.cmegroup.com)

The overall CPI-consumer price index slowed to a 0.3% pace in April from 0.4% a month earlier, slower than the 0.4% pace economists had expected, boosting hopes that the disinflation trend is back on track. That took the annual figure to 3.4%, down from a 3.5% pace. (Source: www.cnbc.com)  

The core CPI, which strips out volatile food and energy prices, rose 0.3% versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

In this context, the DXY-dollar index fell to monthly lows of 104-mark last week, while the yields on the 10-year U.S. Treasury note tumbled to nearly 4.35% as traders have increased expectations of a U.S. interest rate cut this year, which is positive for the non-yielding gold and silver.

DXY-U.S. dollar index, 2-hour chart

Gold and Silver are non-interest-bearing assets, so expectations of lower interest rates lend support to both precious metals prices while on the other hand, the high interest rates increase the cost of holding non-interest-bearing assets and give investors more attractive opportunities to invest their cash instead of bullion.

The additional economic and political risks arising from the unrest in the Middle East, the tariff war between the US and China, and the growing risk of the upcoming elections in the US and Europe have prompted many central banks and investors around the world to seek safety in the traditional risk “hedges” of gold and silver, which has further supported their prices.

 

Wall Street hit fresh record highs on a softer consumer inflation

Posted on by Vrasidas Neofytou

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

In this context, the yield-sensitive mega-cap tech stocks rallied on the falling U.S. dollar and T-yields. Tech stocks including Google, Meta, Nvidia, and Apple led the broader market rally.

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

In this context, the yield-sensitive mega-cap tech stocks rallied on the falling U.S. dollar and T-yields. Tech stocks including Google, Meta, Nvidia, and Apple led the broader market rally.

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

In this context, the yield-sensitive mega-cap tech stocks rallied on the falling U.S. dollar and T-yields. Tech stocks including Google, Meta, Nvidia, and Apple led the broader market rally.

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

In this context, the yield-sensitive mega-cap tech stocks rallied on the falling U.S. dollar and T-yields. Tech stocks including Google, Meta, Nvidia, and Apple led the broader market rally.

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

Economists now see a 52.4% chance that the Federal Reserve will start cutting rates by 25 basis points in September, and another 38.9% chance of rate cut in December, according to the CME FedWatch Tool. (Source: www.cmegroup.com) 

In this context, the yield-sensitive mega-cap tech stocks rallied on the falling U.S. dollar and T-yields. Tech stocks including Google, Meta, Nvidia, and Apple led the broader market rally.

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

Economists now see a 52.4% chance that the Federal Reserve will start cutting rates by 25 basis points in September, and another 38.9% chance of rate cut in December, according to the CME FedWatch Tool. (Source: www.cmegroup.com) 

In this context, the yield-sensitive mega-cap tech stocks rallied on the falling U.S. dollar and T-yields. Tech stocks including Google, Meta, Nvidia, and Apple led the broader market rally.

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

The slowdown in consumer prices boosted hopes that the disinflation trend is back on track, easing worries of raising inflation in early 2024, fuelling trader’s hopes for 2 interest rate cuts by the Federal Reserve until the end of 2024.

Economists now see a 52.4% chance that the Federal Reserve will start cutting rates by 25 basis points in September, and another 38.9% chance of rate cut in December, according to the CME FedWatch Tool. (Source: www.cmegroup.com) 

In this context, the yield-sensitive mega-cap tech stocks rallied on the falling U.S. dollar and T-yields. Tech stocks including Google, Meta, Nvidia, and Apple led the broader market rally.

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

The slowdown in consumer prices boosted hopes that the disinflation trend is back on track, easing worries of raising inflation in early 2024, fuelling trader’s hopes for 2 interest rate cuts by the Federal Reserve until the end of 2024.

Economists now see a 52.4% chance that the Federal Reserve will start cutting rates by 25 basis points in September, and another 38.9% chance of rate cut in December, according to the CME FedWatch Tool. (Source: www.cmegroup.com) 

In this context, the yield-sensitive mega-cap tech stocks rallied on the falling U.S. dollar and T-yields. Tech stocks including Google, Meta, Nvidia, and Apple led the broader market rally.

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

The Core CPI, which strips out volatile food and energy prices, rose 0.3% in April versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

The slowdown in consumer prices boosted hopes that the disinflation trend is back on track, easing worries of raising inflation in early 2024, fuelling trader’s hopes for 2 interest rate cuts by the Federal Reserve until the end of 2024.

Economists now see a 52.4% chance that the Federal Reserve will start cutting rates by 25 basis points in September, and another 38.9% chance of rate cut in December, according to the CME FedWatch Tool. (Source: www.cmegroup.com) 

In this context, the yield-sensitive mega-cap tech stocks rallied on the falling U.S. dollar and T-yields. Tech stocks including Google, Meta, Nvidia, and Apple led the broader market rally.

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

The Core CPI, which strips out volatile food and energy prices, rose 0.3% in April versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

The slowdown in consumer prices boosted hopes that the disinflation trend is back on track, easing worries of raising inflation in early 2024, fuelling trader’s hopes for 2 interest rate cuts by the Federal Reserve until the end of 2024.

Economists now see a 52.4% chance that the Federal Reserve will start cutting rates by 25 basis points in September, and another 38.9% chance of rate cut in December, according to the CME FedWatch Tool. (Source: www.cmegroup.com) 

In this context, the yield-sensitive mega-cap tech stocks rallied on the falling U.S. dollar and T-yields. Tech stocks including Google, Meta, Nvidia, and Apple led the broader market rally.

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

The Core CPI, which strips out volatile food and energy prices, rose 0.3% in April versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

The slowdown in consumer prices boosted hopes that the disinflation trend is back on track, easing worries of raising inflation in early 2024, fuelling trader’s hopes for 2 interest rate cuts by the Federal Reserve until the end of 2024.

Economists now see a 52.4% chance that the Federal Reserve will start cutting rates by 25 basis points in September, and another 38.9% chance of rate cut in December, according to the CME FedWatch Tool. (Source: www.cmegroup.com) 

In this context, the yield-sensitive mega-cap tech stocks rallied on the falling U.S. dollar and T-yields. Tech stocks including Google, Meta, Nvidia, and Apple led the broader market rally.

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

The CPI-consumer inflation data cooled more than expected in April following three months of upside surprises. It slowed to 0.3% in April from 0.4% in March, slower than the 0.4% pace economists had expected, taking the annual figure to 3.4%, down from a 3.5% pace. (Source: www.cnbc.com)

The Core CPI, which strips out volatile food and energy prices, rose 0.3% in April versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

The slowdown in consumer prices boosted hopes that the disinflation trend is back on track, easing worries of raising inflation in early 2024, fuelling trader’s hopes for 2 interest rate cuts by the Federal Reserve until the end of 2024.

Economists now see a 52.4% chance that the Federal Reserve will start cutting rates by 25 basis points in September, and another 38.9% chance of rate cut in December, according to the CME FedWatch Tool. (Source: www.cmegroup.com) 

In this context, the yield-sensitive mega-cap tech stocks rallied on the falling U.S. dollar and T-yields. Tech stocks including Google, Meta, Nvidia, and Apple led the broader market rally.

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

The CPI-consumer inflation data cooled more than expected in April following three months of upside surprises. It slowed to 0.3% in April from 0.4% in March, slower than the 0.4% pace economists had expected, taking the annual figure to 3.4%, down from a 3.5% pace. (Source: www.cnbc.com)

The Core CPI, which strips out volatile food and energy prices, rose 0.3% in April versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

The slowdown in consumer prices boosted hopes that the disinflation trend is back on track, easing worries of raising inflation in early 2024, fuelling trader’s hopes for 2 interest rate cuts by the Federal Reserve until the end of 2024.

Economists now see a 52.4% chance that the Federal Reserve will start cutting rates by 25 basis points in September, and another 38.9% chance of rate cut in December, according to the CME FedWatch Tool. (Source: www.cmegroup.com) 

In this context, the yield-sensitive mega-cap tech stocks rallied on the falling U.S. dollar and T-yields. Tech stocks including Google, Meta, Nvidia, and Apple led the broader market rally.

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

The Wall Street indices, the Dow Jones, S&P 500, and the Nasdaq Composite hit a fresh record high on Wednesday, as the well-awaited U.S. CPI-consumer price inflation cooled more than expected in April, boosting hopes for sooner interest rate cuts by Fed, and sending U.S. dollar and Treasury yields sharply lower.

The CPI-consumer inflation data cooled more than expected in April following three months of upside surprises. It slowed to 0.3% in April from 0.4% in March, slower than the 0.4% pace economists had expected, taking the annual figure to 3.4%, down from a 3.5% pace. (Source: www.cnbc.com)

The Core CPI, which strips out volatile food and energy prices, rose 0.3% in April versus March levels, while the annual core CPI inflation rate eased to 3.6% from 3.8% in March.

The slowdown in consumer prices boosted hopes that the disinflation trend is back on track, easing worries of raising inflation in early 2024, fuelling trader’s hopes for 2 interest rate cuts by the Federal Reserve until the end of 2024.

Economists now see a 52.4% chance that the Federal Reserve will start cutting rates by 25 basis points in September, and another 38.9% chance of rate cut in December, according to the CME FedWatch Tool. (Source: www.cmegroup.com) 

In this context, the yield-sensitive mega-cap tech stocks rallied on the falling U.S. dollar and T-yields. Tech stocks including Google, Meta, Nvidia, and Apple led the broader market rally.

The Dow Jones Industrial Average rose 349 points, or 0.9% to 39,908, S&P 500 rose 1.2% higher, surpassing the 5,300 level for the first time ever, while the tech-heavy NASDAQ Composite rose 1.4% to 16,742.

On the forex sector, the U.S. dollar tumbled across the board as the cooling inflation ramped up bets on interest rate cuts. The inflation readings, which were followed by softer-than-expected retail sales data, pushed up hopes that inflation will ease in the coming months, giving the Fed more confidence to begin trimming rates, which is a bearish catalyst for the greenback.

The weaker dollar and bond yields pushed north major peers, with Euro advancing to nearly $1.09; the Pound Sterling gained to nearly $1.27, while the Japanese Yen rebounded to ¥154.

Bitcoin rallied back to the $66,000 level, benefiting from the improved risk sentiment and the weaker dollar.

Ethereum rose over the $3,020 mark on a risk-on mood, and Solana gained 10% to $163, leading a strong rally in the altcoin sector.

 

Weekly market overview: What you should know this week

Posted on by Vrasidas Neofytou

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

The better-than-expected first-quarter inflation data has prompted investors to scale back their expectations for Federal Reserve rate cuts in 2024.

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

The better-than-expected first-quarter inflation data has prompted investors to scale back their expectations for Federal Reserve rate cuts in 2024.

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

In the week ahead: All eyes will be on the economic calendar this week, with a focus on Fed Chairman Powell’s speech on Tuesday and key US inflation data for April (CPI and core inflation) on Wednesday. Initial jobless claims will also be in focus on Thursday after the weekly data surprisingly hit a nine-month high in the first week of May.

The better-than-expected first-quarter inflation data has prompted investors to scale back their expectations for Federal Reserve rate cuts in 2024.

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

In the week ahead: All eyes will be on the economic calendar this week, with a focus on Fed Chairman Powell’s speech on Tuesday and key US inflation data for April (CPI and core inflation) on Wednesday. Initial jobless claims will also be in focus on Thursday after the weekly data surprisingly hit a nine-month high in the first week of May.

The better-than-expected first-quarter inflation data has prompted investors to scale back their expectations for Federal Reserve rate cuts in 2024.

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

Meanwhile, the S&P 500 Index closed above the 5,220 mark on Friday for the first time since the beginning of April, recording a weekly gain of almost 2 %, while the technology-heavy Nasdaq Composite only gained 1 % to 16,340 points last week due to some profit-taking in the technology sector.

In the week ahead: All eyes will be on the economic calendar this week, with a focus on Fed Chairman Powell’s speech on Tuesday and key US inflation data for April (CPI and core inflation) on Wednesday. Initial jobless claims will also be in focus on Thursday after the weekly data surprisingly hit a nine-month high in the first week of May.

The better-than-expected first-quarter inflation data has prompted investors to scale back their expectations for Federal Reserve rate cuts in 2024.

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

Meanwhile, the S&P 500 Index closed above the 5,220 mark on Friday for the first time since the beginning of April, recording a weekly gain of almost 2 %, while the technology-heavy Nasdaq Composite only gained 1 % to 16,340 points last week due to some profit-taking in the technology sector.

In the week ahead: All eyes will be on the economic calendar this week, with a focus on Fed Chairman Powell’s speech on Tuesday and key US inflation data for April (CPI and core inflation) on Wednesday. Initial jobless claims will also be in focus on Thursday after the weekly data surprisingly hit a nine-month high in the first week of May.

The better-than-expected first-quarter inflation data has prompted investors to scale back their expectations for Federal Reserve rate cuts in 2024.

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

The 30-stock Dow Jones Industrial Average gained more than 2% last week to 39,512 points, closing eight consecutive sessions higher and recording its best week of the year on improved investment sentiment.

Meanwhile, the S&P 500 Index closed above the 5,220 mark on Friday for the first time since the beginning of April, recording a weekly gain of almost 2 %, while the technology-heavy Nasdaq Composite only gained 1 % to 16,340 points last week due to some profit-taking in the technology sector.

In the week ahead: All eyes will be on the economic calendar this week, with a focus on Fed Chairman Powell’s speech on Tuesday and key US inflation data for April (CPI and core inflation) on Wednesday. Initial jobless claims will also be in focus on Thursday after the weekly data surprisingly hit a nine-month high in the first week of May.

The better-than-expected first-quarter inflation data has prompted investors to scale back their expectations for Federal Reserve rate cuts in 2024.

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

The 30-stock Dow Jones Industrial Average gained more than 2% last week to 39,512 points, closing eight consecutive sessions higher and recording its best week of the year on improved investment sentiment.

Meanwhile, the S&P 500 Index closed above the 5,220 mark on Friday for the first time since the beginning of April, recording a weekly gain of almost 2 %, while the technology-heavy Nasdaq Composite only gained 1 % to 16,340 points last week due to some profit-taking in the technology sector.

In the week ahead: All eyes will be on the economic calendar this week, with a focus on Fed Chairman Powell’s speech on Tuesday and key US inflation data for April (CPI and core inflation) on Wednesday. Initial jobless claims will also be in focus on Thursday after the weekly data surprisingly hit a nine-month high in the first week of May.

The better-than-expected first-quarter inflation data has prompted investors to scale back their expectations for Federal Reserve rate cuts in 2024.

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

Indeed, stocks advanced last week after Fed Chairman Powell reiterated that the bank would not raise interest rates further, which could be seen as something of a relief given a slew of hotter-than-expected inflation prints in recent months.

The 30-stock Dow Jones Industrial Average gained more than 2% last week to 39,512 points, closing eight consecutive sessions higher and recording its best week of the year on improved investment sentiment.

Meanwhile, the S&P 500 Index closed above the 5,220 mark on Friday for the first time since the beginning of April, recording a weekly gain of almost 2 %, while the technology-heavy Nasdaq Composite only gained 1 % to 16,340 points last week due to some profit-taking in the technology sector.

In the week ahead: All eyes will be on the economic calendar this week, with a focus on Fed Chairman Powell’s speech on Tuesday and key US inflation data for April (CPI and core inflation) on Wednesday. Initial jobless claims will also be in focus on Thursday after the weekly data surprisingly hit a nine-month high in the first week of May.

The better-than-expected first-quarter inflation data has prompted investors to scale back their expectations for Federal Reserve rate cuts in 2024.

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

Indeed, stocks advanced last week after Fed Chairman Powell reiterated that the bank would not raise interest rates further, which could be seen as something of a relief given a slew of hotter-than-expected inflation prints in recent months.

The 30-stock Dow Jones Industrial Average gained more than 2% last week to 39,512 points, closing eight consecutive sessions higher and recording its best week of the year on improved investment sentiment.

Meanwhile, the S&P 500 Index closed above the 5,220 mark on Friday for the first time since the beginning of April, recording a weekly gain of almost 2 %, while the technology-heavy Nasdaq Composite only gained 1 % to 16,340 points last week due to some profit-taking in the technology sector.

In the week ahead: All eyes will be on the economic calendar this week, with a focus on Fed Chairman Powell’s speech on Tuesday and key US inflation data for April (CPI and core inflation) on Wednesday. Initial jobless claims will also be in focus on Thursday after the weekly data surprisingly hit a nine-month high in the first week of May.

The better-than-expected first-quarter inflation data has prompted investors to scale back their expectations for Federal Reserve rate cuts in 2024.

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

With 92% of S&P 500 companies reporting first-quarter earnings, nearly 80% of firms beat Wall Street forecasts, helping stocks continue to hold up well despite the threat of inflation. (Source: www.advantage.factset.com) 

Indeed, stocks advanced last week after Fed Chairman Powell reiterated that the bank would not raise interest rates further, which could be seen as something of a relief given a slew of hotter-than-expected inflation prints in recent months.

The 30-stock Dow Jones Industrial Average gained more than 2% last week to 39,512 points, closing eight consecutive sessions higher and recording its best week of the year on improved investment sentiment.

Meanwhile, the S&P 500 Index closed above the 5,220 mark on Friday for the first time since the beginning of April, recording a weekly gain of almost 2 %, while the technology-heavy Nasdaq Composite only gained 1 % to 16,340 points last week due to some profit-taking in the technology sector.

In the week ahead: All eyes will be on the economic calendar this week, with a focus on Fed Chairman Powell’s speech on Tuesday and key US inflation data for April (CPI and core inflation) on Wednesday. Initial jobless claims will also be in focus on Thursday after the weekly data surprisingly hit a nine-month high in the first week of May.

The better-than-expected first-quarter inflation data has prompted investors to scale back their expectations for Federal Reserve rate cuts in 2024.

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

With 92% of S&P 500 companies reporting first-quarter earnings, nearly 80% of firms beat Wall Street forecasts, helping stocks continue to hold up well despite the threat of inflation. (Source: www.advantage.factset.com) 

Indeed, stocks advanced last week after Fed Chairman Powell reiterated that the bank would not raise interest rates further, which could be seen as something of a relief given a slew of hotter-than-expected inflation prints in recent months.

The 30-stock Dow Jones Industrial Average gained more than 2% last week to 39,512 points, closing eight consecutive sessions higher and recording its best week of the year on improved investment sentiment.

Meanwhile, the S&P 500 Index closed above the 5,220 mark on Friday for the first time since the beginning of April, recording a weekly gain of almost 2 %, while the technology-heavy Nasdaq Composite only gained 1 % to 16,340 points last week due to some profit-taking in the technology sector.

In the week ahead: All eyes will be on the economic calendar this week, with a focus on Fed Chairman Powell’s speech on Tuesday and key US inflation data for April (CPI and core inflation) on Wednesday. Initial jobless claims will also be in focus on Thursday after the weekly data surprisingly hit a nine-month high in the first week of May.

The better-than-expected first-quarter inflation data has prompted investors to scale back their expectations for Federal Reserve rate cuts in 2024.

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

All 3 major U.S. stock indices rallied last week, climbing back toward March’s record highs fueled by a better-than-expected Q1 corporate earnings season.

With 92% of S&P 500 companies reporting first-quarter earnings, nearly 80% of firms beat Wall Street forecasts, helping stocks continue to hold up well despite the threat of inflation. (Source: www.advantage.factset.com) 

Indeed, stocks advanced last week after Fed Chairman Powell reiterated that the bank would not raise interest rates further, which could be seen as something of a relief given a slew of hotter-than-expected inflation prints in recent months.

The 30-stock Dow Jones Industrial Average gained more than 2% last week to 39,512 points, closing eight consecutive sessions higher and recording its best week of the year on improved investment sentiment.

Meanwhile, the S&P 500 Index closed above the 5,220 mark on Friday for the first time since the beginning of April, recording a weekly gain of almost 2 %, while the technology-heavy Nasdaq Composite only gained 1 % to 16,340 points last week due to some profit-taking in the technology sector.

In the week ahead: All eyes will be on the economic calendar this week, with a focus on Fed Chairman Powell’s speech on Tuesday and key US inflation data for April (CPI and core inflation) on Wednesday. Initial jobless claims will also be in focus on Thursday after the weekly data surprisingly hit a nine-month high in the first week of May.

The better-than-expected first-quarter inflation data has prompted investors to scale back their expectations for Federal Reserve rate cuts in 2024.

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

Equities:

All 3 major U.S. stock indices rallied last week, climbing back toward March’s record highs fueled by a better-than-expected Q1 corporate earnings season.

With 92% of S&P 500 companies reporting first-quarter earnings, nearly 80% of firms beat Wall Street forecasts, helping stocks continue to hold up well despite the threat of inflation. (Source: www.advantage.factset.com) 

Indeed, stocks advanced last week after Fed Chairman Powell reiterated that the bank would not raise interest rates further, which could be seen as something of a relief given a slew of hotter-than-expected inflation prints in recent months.

The 30-stock Dow Jones Industrial Average gained more than 2% last week to 39,512 points, closing eight consecutive sessions higher and recording its best week of the year on improved investment sentiment.

Meanwhile, the S&P 500 Index closed above the 5,220 mark on Friday for the first time since the beginning of April, recording a weekly gain of almost 2 %, while the technology-heavy Nasdaq Composite only gained 1 % to 16,340 points last week due to some profit-taking in the technology sector.

In the week ahead: All eyes will be on the economic calendar this week, with a focus on Fed Chairman Powell’s speech on Tuesday and key US inflation data for April (CPI and core inflation) on Wednesday. Initial jobless claims will also be in focus on Thursday after the weekly data surprisingly hit a nine-month high in the first week of May.

The better-than-expected first-quarter inflation data has prompted investors to scale back their expectations for Federal Reserve rate cuts in 2024.

 

 

On Wednesday, investors will get their first look at whether this trend continued into the second quarter with the release of the April Consumer Price Index (CPI). Wall Street expects an annual gain of 3.4% for headline CPI, which includes the price of food and energy, a decrease from the 3.5% headline number in March. Prices are set to rise 0.4% on a month-over-month basis, in line with March’s rise. (Source: www.finance.yahoo.com)

On a “core” basis, which strips out the food and energy prices, inflation is expected to have risen 3.6% year over year, a slowdown from the 3.8% increase seen in March. Monthly core price increases are expected to clock in at 0.3%, down from 0.4% in the prior month.

April’s CPI inflation print will also serve as a key gauge of whether equities can remain on stable footing after a strong earnings period.

 

Commodities:

Gold and Silver ended higher last week to $2,360/oz and $28,50/oz respectively, as the weaker dollar and the falling bond yields supported the dollar-denominated and non-yielding bullion.

U.S.-based WTI crude oil fell below the key $80/b support level, pressured by an unexpected increase in U.S. crude inventories driven by a lower fuel demand. U.S. oil inventory levels have risen to the highest levels since June 2023 as refiners process less crude and demand for gasoline has softened.

 

Forex:

The DXY-dollar index, which measures the greenback against a basket of currencies, ended last week slightly down to the 105.30 mark, despite the hawkish comments from Federal Reserve policymakers.

Pound Sterling rose to $1.2550 as the BoE kept rates unchanged and the UK economy pulled out of a technical recession. The Bank of England (BoE) held its key interest rate steady at 5.25% while indicating that it could ease policy as soon as June depending on incoming data.

The BoE also updated its economic forecasts, where it now expects inflation to slow more sharply to 1.9% in 2026 and 1.6% in 2027. (Source: www.theguardian.com)

Brent crude oil fell to $86 as Middle East fears eased

Posted on by Vrasidas Neofytou

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

Despite the current losses, the oil prices remain positive for the year so far, adding over 10% due to the recent geopolitical tensions in the Middle East, and OPEC+’s supply cuts that have tightened the global oil market.

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

Despite the current losses, the oil prices remain positive for the year so far, adding over 10% due to the recent geopolitical tensions in the Middle East, and OPEC+’s supply cuts that have tightened the global oil market.

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

Hence, oil traders have also ignored the newest sanctions on Iran’s oil sector passed by the U.S. House during the weekend following the unprecedented drone attack on Israel. Most of Iran’s oil exports, approx. 1.2 million barrels per day (bpd), are traveling to China, mainly on independent refineries.

Despite the current losses, the oil prices remain positive for the year so far, adding over 10% due to the recent geopolitical tensions in the Middle East, and OPEC+’s supply cuts that have tightened the global oil market.

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

Hence, oil traders have also ignored the newest sanctions on Iran’s oil sector passed by the U.S. House during the weekend following the unprecedented drone attack on Israel. Most of Iran’s oil exports, approx. 1.2 million barrels per day (bpd), are traveling to China, mainly on independent refineries.

Despite the current losses, the oil prices remain positive for the year so far, adding over 10% due to the recent geopolitical tensions in the Middle East, and OPEC+’s supply cuts that have tightened the global oil market.

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

Both Brent and WTI oil prices initially rallied 3% to $91/b and $86/b respectively on Friday morning after explosions were heard in the Iranian city of Isfahan in what sources described as an Israeli attack, before plunging to the current levels after Tehran played down the incident and said it did not plan to retaliate.

Hence, oil traders have also ignored the newest sanctions on Iran’s oil sector passed by the U.S. House during the weekend following the unprecedented drone attack on Israel. Most of Iran’s oil exports, approx. 1.2 million barrels per day (bpd), are traveling to China, mainly on independent refineries.

Despite the current losses, the oil prices remain positive for the year so far, adding over 10% due to the recent geopolitical tensions in the Middle East, and OPEC+’s supply cuts that have tightened the global oil market.

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

Both Brent and WTI oil prices initially rallied 3% to $91/b and $86/b respectively on Friday morning after explosions were heard in the Iranian city of Isfahan in what sources described as an Israeli attack, before plunging to the current levels after Tehran played down the incident and said it did not plan to retaliate.

Hence, oil traders have also ignored the newest sanctions on Iran’s oil sector passed by the U.S. House during the weekend following the unprecedented drone attack on Israel. Most of Iran’s oil exports, approx. 1.2 million barrels per day (bpd), are traveling to China, mainly on independent refineries.

Despite the current losses, the oil prices remain positive for the year so far, adding over 10% due to the recent geopolitical tensions in the Middle East, and OPEC+’s supply cuts that have tightened the global oil market.

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

Brent crude oil chart

Both Brent and WTI oil prices initially rallied 3% to $91/b and $86/b respectively on Friday morning after explosions were heard in the Iranian city of Isfahan in what sources described as an Israeli attack, before plunging to the current levels after Tehran played down the incident and said it did not plan to retaliate.

Hence, oil traders have also ignored the newest sanctions on Iran’s oil sector passed by the U.S. House during the weekend following the unprecedented drone attack on Israel. Most of Iran’s oil exports, approx. 1.2 million barrels per day (bpd), are traveling to China, mainly on independent refineries.

Despite the current losses, the oil prices remain positive for the year so far, adding over 10% due to the recent geopolitical tensions in the Middle East, and OPEC+’s supply cuts that have tightened the global oil market.

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

Brent crude oil chart

Both Brent and WTI oil prices initially rallied 3% to $91/b and $86/b respectively on Friday morning after explosions were heard in the Iranian city of Isfahan in what sources described as an Israeli attack, before plunging to the current levels after Tehran played down the incident and said it did not plan to retaliate.

Hence, oil traders have also ignored the newest sanctions on Iran’s oil sector passed by the U.S. House during the weekend following the unprecedented drone attack on Israel. Most of Iran’s oil exports, approx. 1.2 million barrels per day (bpd), are traveling to China, mainly on independent refineries.

Despite the current losses, the oil prices remain positive for the year so far, adding over 10% due to the recent geopolitical tensions in the Middle East, and OPEC+’s supply cuts that have tightened the global oil market.

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

Brent crude oil chart

Both Brent and WTI oil prices initially rallied 3% to $91/b and $86/b respectively on Friday morning after explosions were heard in the Iranian city of Isfahan in what sources described as an Israeli attack, before plunging to the current levels after Tehran played down the incident and said it did not plan to retaliate.

Hence, oil traders have also ignored the newest sanctions on Iran’s oil sector passed by the U.S. House during the weekend following the unprecedented drone attack on Israel. Most of Iran’s oil exports, approx. 1.2 million barrels per day (bpd), are traveling to China, mainly on independent refineries.

Despite the current losses, the oil prices remain positive for the year so far, adding over 10% due to the recent geopolitical tensions in the Middle East, and OPEC+’s supply cuts that have tightened the global oil market.

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

The price of the Brent contract fell nearly 1.50% this morning toward the 86/b support level after losing 3.50% last week as Middle East fears eased, after Iran downplayed Israel’s response to their unexpected drone and missile strike on Israel in mid-April, indicating that an escalation of hostilities in the oil-rich region might be avoided.

Brent crude oil chart

Both Brent and WTI oil prices initially rallied 3% to $91/b and $86/b respectively on Friday morning after explosions were heard in the Iranian city of Isfahan in what sources described as an Israeli attack, before plunging to the current levels after Tehran played down the incident and said it did not plan to retaliate.

Hence, oil traders have also ignored the newest sanctions on Iran’s oil sector passed by the U.S. House during the weekend following the unprecedented drone attack on Israel. Most of Iran’s oil exports, approx. 1.2 million barrels per day (bpd), are traveling to China, mainly on independent refineries.

Despite the current losses, the oil prices remain positive for the year so far, adding over 10% due to the recent geopolitical tensions in the Middle East, and OPEC+’s supply cuts that have tightened the global oil market.

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

The price of the Brent contract fell nearly 1.50% this morning toward the 86/b support level after losing 3.50% last week as Middle East fears eased, after Iran downplayed Israel’s response to their unexpected drone and missile strike on Israel in mid-April, indicating that an escalation of hostilities in the oil-rich region might be avoided.

Brent crude oil chart

Both Brent and WTI oil prices initially rallied 3% to $91/b and $86/b respectively on Friday morning after explosions were heard in the Iranian city of Isfahan in what sources described as an Israeli attack, before plunging to the current levels after Tehran played down the incident and said it did not plan to retaliate.

Hence, oil traders have also ignored the newest sanctions on Iran’s oil sector passed by the U.S. House during the weekend following the unprecedented drone attack on Israel. Most of Iran’s oil exports, approx. 1.2 million barrels per day (bpd), are traveling to China, mainly on independent refineries.

Despite the current losses, the oil prices remain positive for the year so far, adding over 10% due to the recent geopolitical tensions in the Middle East, and OPEC+’s supply cuts that have tightened the global oil market.

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

The crude oil prices posted their first back-to-back weekly decline in 2024 as investors believe that the regional tensions in the Middle East won’t convert into a general military conflict that disrupts global oil supplies in the short term.

The price of the Brent contract fell nearly 1.50% this morning toward the 86/b support level after losing 3.50% last week as Middle East fears eased, after Iran downplayed Israel’s response to their unexpected drone and missile strike on Israel in mid-April, indicating that an escalation of hostilities in the oil-rich region might be avoided.

Brent crude oil chart

Both Brent and WTI oil prices initially rallied 3% to $91/b and $86/b respectively on Friday morning after explosions were heard in the Iranian city of Isfahan in what sources described as an Israeli attack, before plunging to the current levels after Tehran played down the incident and said it did not plan to retaliate.

Hence, oil traders have also ignored the newest sanctions on Iran’s oil sector passed by the U.S. House during the weekend following the unprecedented drone attack on Israel. Most of Iran’s oil exports, approx. 1.2 million barrels per day (bpd), are traveling to China, mainly on independent refineries.

Despite the current losses, the oil prices remain positive for the year so far, adding over 10% due to the recent geopolitical tensions in the Middle East, and OPEC+’s supply cuts that have tightened the global oil market.

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

The crude oil prices posted their first back-to-back weekly decline in 2024 as investors believe that the regional tensions in the Middle East won’t convert into a general military conflict that disrupts global oil supplies in the short term.

The price of the Brent contract fell nearly 1.50% this morning toward the 86/b support level after losing 3.50% last week as Middle East fears eased, after Iran downplayed Israel’s response to their unexpected drone and missile strike on Israel in mid-April, indicating that an escalation of hostilities in the oil-rich region might be avoided.

Brent crude oil chart

Both Brent and WTI oil prices initially rallied 3% to $91/b and $86/b respectively on Friday morning after explosions were heard in the Iranian city of Isfahan in what sources described as an Israeli attack, before plunging to the current levels after Tehran played down the incident and said it did not plan to retaliate.

Hence, oil traders have also ignored the newest sanctions on Iran’s oil sector passed by the U.S. House during the weekend following the unprecedented drone attack on Israel. Most of Iran’s oil exports, approx. 1.2 million barrels per day (bpd), are traveling to China, mainly on independent refineries.

Despite the current losses, the oil prices remain positive for the year so far, adding over 10% due to the recent geopolitical tensions in the Middle East, and OPEC+’s supply cuts that have tightened the global oil market.

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

Brent and WTI crude oil prices extended recent losses toward $86/b and $80/b levels respectively on Monday morning, after a lack of immediate escalation between Iran-Israel, and despite the new U.S. sanctions on Iran’s oil sector.

The crude oil prices posted their first back-to-back weekly decline in 2024 as investors believe that the regional tensions in the Middle East won’t convert into a general military conflict that disrupts global oil supplies in the short term.

The price of the Brent contract fell nearly 1.50% this morning toward the 86/b support level after losing 3.50% last week as Middle East fears eased, after Iran downplayed Israel’s response to their unexpected drone and missile strike on Israel in mid-April, indicating that an escalation of hostilities in the oil-rich region might be avoided.

Brent crude oil chart

Both Brent and WTI oil prices initially rallied 3% to $91/b and $86/b respectively on Friday morning after explosions were heard in the Iranian city of Isfahan in what sources described as an Israeli attack, before plunging to the current levels after Tehran played down the incident and said it did not plan to retaliate.

Hence, oil traders have also ignored the newest sanctions on Iran’s oil sector passed by the U.S. House during the weekend following the unprecedented drone attack on Israel. Most of Iran’s oil exports, approx. 1.2 million barrels per day (bpd), are traveling to China, mainly on independent refineries.

Despite the current losses, the oil prices remain positive for the year so far, adding over 10% due to the recent geopolitical tensions in the Middle East, and OPEC+’s supply cuts that have tightened the global oil market.

OPEC+ members, led by de-facto leaders of Saudi Arabia and Russia, extended voluntary output cuts of 2.2 million barrels per day (bpd) until the end of June, helping oil prices elevated from February’s lows of $77/b to over $85/b before the outbreak of Middle East crisis in early April.

Exclusive Change Capital Ltd is regulated by the Cyprus Securities and Exchange Commission (CySEC) under the licence number CIF 330/17. Exclusive Capital Ltd operates in accordance with the Markets in Financial Instruments Directive (MiFID) of the European Union.

Exclusive Change Capital Ltd is incorporated under the laws of Cyprus, with registration no. HE 337858, regulated by CySEC under license no. 330/17 and has its registered address at Theodorou Potamianou 56, 4th Floor, Kato Polemidia, 4155, Limassol, Cyprus

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