Gold hits a two-month low of $1,930/oz on debt agreement and a soaring dollar

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

The DXY-U.S. dollar index which tracks the value of the greenback against six major peers, has recovered up to the 104.50 level, making the dollar-denominated gold and silver contracts less attractive for buyers with foreign currency.

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

The DXY-U.S. dollar index which tracks the value of the greenback against six major peers, has recovered up to the 104.50 level, making the dollar-denominated gold and silver contracts less attractive for buyers with foreign currency.

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

Fed officials have increased their hawkish outlook on interest rates during May as they worry even more about resilient inflation, sending higher yields on 2-year and 10-year U.S. bonds to 4.60% and 3.70% respectively, damaging the appeal for zero-yield gold and silver.

The DXY-U.S. dollar index which tracks the value of the greenback against six major peers, has recovered up to the 104.50 level, making the dollar-denominated gold and silver contracts less attractive for buyers with foreign currency.

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

Fed officials have increased their hawkish outlook on interest rates during May as they worry even more about resilient inflation, sending higher yields on 2-year and 10-year U.S. bonds to 4.60% and 3.70% respectively, damaging the appeal for zero-yield gold and silver.

The DXY-U.S. dollar index which tracks the value of the greenback against six major peers, has recovered up to the 104.50 level, making the dollar-denominated gold and silver contracts less attractive for buyers with foreign currency.

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

Greenback has been boosted following the hawkish stance by the Federal Reserve as the U.S. CPI inflation was still hot in April, while the labor market and economy remain too strong despite rising rates, indicating that the central bank will need to raise interest rates again in June and July versus expectations for a pause.

Fed officials have increased their hawkish outlook on interest rates during May as they worry even more about resilient inflation, sending higher yields on 2-year and 10-year U.S. bonds to 4.60% and 3.70% respectively, damaging the appeal for zero-yield gold and silver.

The DXY-U.S. dollar index which tracks the value of the greenback against six major peers, has recovered up to the 104.50 level, making the dollar-denominated gold and silver contracts less attractive for buyers with foreign currency.

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

Greenback has been boosted following the hawkish stance by the Federal Reserve as the U.S. CPI inflation was still hot in April, while the labor market and economy remain too strong despite rising rates, indicating that the central bank will need to raise interest rates again in June and July versus expectations for a pause.

Fed officials have increased their hawkish outlook on interest rates during May as they worry even more about resilient inflation, sending higher yields on 2-year and 10-year U.S. bonds to 4.60% and 3.70% respectively, damaging the appeal for zero-yield gold and silver.

The DXY-U.S. dollar index which tracks the value of the greenback against six major peers, has recovered up to the 104.50 level, making the dollar-denominated gold and silver contracts less attractive for buyers with foreign currency.

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

The bearish sentiment for bullion has also been boosted in the last few weeks following the rebound of the U.S. dollar from its yearly lows driven by the U.S. regional banking crisis in early March.

Greenback has been boosted following the hawkish stance by the Federal Reserve as the U.S. CPI inflation was still hot in April, while the labor market and economy remain too strong despite rising rates, indicating that the central bank will need to raise interest rates again in June and July versus expectations for a pause.

Fed officials have increased their hawkish outlook on interest rates during May as they worry even more about resilient inflation, sending higher yields on 2-year and 10-year U.S. bonds to 4.60% and 3.70% respectively, damaging the appeal for zero-yield gold and silver.

The DXY-U.S. dollar index which tracks the value of the greenback against six major peers, has recovered up to the 104.50 level, making the dollar-denominated gold and silver contracts less attractive for buyers with foreign currency.

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

The bearish sentiment for bullion has also been boosted in the last few weeks following the rebound of the U.S. dollar from its yearly lows driven by the U.S. regional banking crisis in early March.

Greenback has been boosted following the hawkish stance by the Federal Reserve as the U.S. CPI inflation was still hot in April, while the labor market and economy remain too strong despite rising rates, indicating that the central bank will need to raise interest rates again in June and July versus expectations for a pause.

Fed officials have increased their hawkish outlook on interest rates during May as they worry even more about resilient inflation, sending higher yields on 2-year and 10-year U.S. bonds to 4.60% and 3.70% respectively, damaging the appeal for zero-yield gold and silver.

The DXY-U.S. dollar index which tracks the value of the greenback against six major peers, has recovered up to the 104.50 level, making the dollar-denominated gold and silver contracts less attractive for buyers with foreign currency.

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

The optimism over a U.S. debt ceiling deal has eased fears of a debt default in the world’s largest economy, reducing the demand for protection by using gold and silver futures as a default-hedge trade in case debt ceiling talks failed.

The bearish sentiment for bullion has also been boosted in the last few weeks following the rebound of the U.S. dollar from its yearly lows driven by the U.S. regional banking crisis in early March.

Greenback has been boosted following the hawkish stance by the Federal Reserve as the U.S. CPI inflation was still hot in April, while the labor market and economy remain too strong despite rising rates, indicating that the central bank will need to raise interest rates again in June and July versus expectations for a pause.

Fed officials have increased their hawkish outlook on interest rates during May as they worry even more about resilient inflation, sending higher yields on 2-year and 10-year U.S. bonds to 4.60% and 3.70% respectively, damaging the appeal for zero-yield gold and silver.

The DXY-U.S. dollar index which tracks the value of the greenback against six major peers, has recovered up to the 104.50 level, making the dollar-denominated gold and silver contracts less attractive for buyers with foreign currency.

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

The optimism over a U.S. debt ceiling deal has eased fears of a debt default in the world’s largest economy, reducing the demand for protection by using gold and silver futures as a default-hedge trade in case debt ceiling talks failed.

The bearish sentiment for bullion has also been boosted in the last few weeks following the rebound of the U.S. dollar from its yearly lows driven by the U.S. regional banking crisis in early March.

Greenback has been boosted following the hawkish stance by the Federal Reserve as the U.S. CPI inflation was still hot in April, while the labor market and economy remain too strong despite rising rates, indicating that the central bank will need to raise interest rates again in June and July versus expectations for a pause.

Fed officials have increased their hawkish outlook on interest rates during May as they worry even more about resilient inflation, sending higher yields on 2-year and 10-year U.S. bonds to 4.60% and 3.70% respectively, damaging the appeal for zero-yield gold and silver.

The DXY-U.S. dollar index which tracks the value of the greenback against six major peers, has recovered up to the 104.50 level, making the dollar-denominated gold and silver contracts less attractive for buyers with foreign currency.

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

Gold, Daily chart

The optimism over a U.S. debt ceiling deal has eased fears of a debt default in the world’s largest economy, reducing the demand for protection by using gold and silver futures as a default-hedge trade in case debt ceiling talks failed.

The bearish sentiment for bullion has also been boosted in the last few weeks following the rebound of the U.S. dollar from its yearly lows driven by the U.S. regional banking crisis in early March.

Greenback has been boosted following the hawkish stance by the Federal Reserve as the U.S. CPI inflation was still hot in April, while the labor market and economy remain too strong despite rising rates, indicating that the central bank will need to raise interest rates again in June and July versus expectations for a pause.

Fed officials have increased their hawkish outlook on interest rates during May as they worry even more about resilient inflation, sending higher yields on 2-year and 10-year U.S. bonds to 4.60% and 3.70% respectively, damaging the appeal for zero-yield gold and silver.

The DXY-U.S. dollar index which tracks the value of the greenback against six major peers, has recovered up to the 104.50 level, making the dollar-denominated gold and silver contracts less attractive for buyers with foreign currency.

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

Gold, Daily chart

The optimism over a U.S. debt ceiling deal has eased fears of a debt default in the world’s largest economy, reducing the demand for protection by using gold and silver futures as a default-hedge trade in case debt ceiling talks failed.

The bearish sentiment for bullion has also been boosted in the last few weeks following the rebound of the U.S. dollar from its yearly lows driven by the U.S. regional banking crisis in early March.

Greenback has been boosted following the hawkish stance by the Federal Reserve as the U.S. CPI inflation was still hot in April, while the labor market and economy remain too strong despite rising rates, indicating that the central bank will need to raise interest rates again in June and July versus expectations for a pause.

Fed officials have increased their hawkish outlook on interest rates during May as they worry even more about resilient inflation, sending higher yields on 2-year and 10-year U.S. bonds to 4.60% and 3.70% respectively, damaging the appeal for zero-yield gold and silver.

The DXY-U.S. dollar index which tracks the value of the greenback against six major peers, has recovered up to the 104.50 level, making the dollar-denominated gold and silver contracts less attractive for buyers with foreign currency.

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

The price of gold dropped as much as 2% to nearly $1,930/oz on Tuesday morning, posting its lowest level since mid-March as investors move away from havens to pivot into risk-driven assets following the news of a tentative deal to raise the U.S. debt ceiling between the Joe Biden administration and Republican lawmakers, coupled with the rebounding greenback.

Gold, Daily chart

The optimism over a U.S. debt ceiling deal has eased fears of a debt default in the world’s largest economy, reducing the demand for protection by using gold and silver futures as a default-hedge trade in case debt ceiling talks failed.

The bearish sentiment for bullion has also been boosted in the last few weeks following the rebound of the U.S. dollar from its yearly lows driven by the U.S. regional banking crisis in early March.

Greenback has been boosted following the hawkish stance by the Federal Reserve as the U.S. CPI inflation was still hot in April, while the labor market and economy remain too strong despite rising rates, indicating that the central bank will need to raise interest rates again in June and July versus expectations for a pause.

Fed officials have increased their hawkish outlook on interest rates during May as they worry even more about resilient inflation, sending higher yields on 2-year and 10-year U.S. bonds to 4.60% and 3.70% respectively, damaging the appeal for zero-yield gold and silver.

The DXY-U.S. dollar index which tracks the value of the greenback against six major peers, has recovered up to the 104.50 level, making the dollar-denominated gold and silver contracts less attractive for buyers with foreign currency.

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

The price of gold dropped as much as 2% to nearly $1,930/oz on Tuesday morning, posting its lowest level since mid-March as investors move away from havens to pivot into risk-driven assets following the news of a tentative deal to raise the U.S. debt ceiling between the Joe Biden administration and Republican lawmakers, coupled with the rebounding greenback.

Gold, Daily chart

The optimism over a U.S. debt ceiling deal has eased fears of a debt default in the world’s largest economy, reducing the demand for protection by using gold and silver futures as a default-hedge trade in case debt ceiling talks failed.

The bearish sentiment for bullion has also been boosted in the last few weeks following the rebound of the U.S. dollar from its yearly lows driven by the U.S. regional banking crisis in early March.

Greenback has been boosted following the hawkish stance by the Federal Reserve as the U.S. CPI inflation was still hot in April, while the labor market and economy remain too strong despite rising rates, indicating that the central bank will need to raise interest rates again in June and July versus expectations for a pause.

Fed officials have increased their hawkish outlook on interest rates during May as they worry even more about resilient inflation, sending higher yields on 2-year and 10-year U.S. bonds to 4.60% and 3.70% respectively, damaging the appeal for zero-yield gold and silver.

The DXY-U.S. dollar index which tracks the value of the greenback against six major peers, has recovered up to the 104.50 level, making the dollar-denominated gold and silver contracts less attractive for buyers with foreign currency.

In this context, the price of the yellow metal has lost over 6% since hitting an all-time high of $2,085/oz on May 4, falling for four-straight trading weeks in the row, while silver -the white gold- has also fallen below the key $23/oz support level this morning, following the selling pressure on gold.

Turkish Lira falls over 20 a dollar as Erdogan secures victory

Major global analyst Morgan Stanley is predicting Lira to weaken as low as 28 per dollar by the end of 2023 if Erdogan doesn’t change his monetary policy of keeping interest rates low, at a time central bank’s fx and gold reserves have been weakening to support the falling Lira.

Turkish central bankers backed by Erdogan’s will, have applied unusual monetary policies to curb inflation that topped nearly 85% last year, cutting interest rates to 8.5% from 19% two years ago despite elevating inflation, to support local businesses and households.

Major global analyst Morgan Stanley is predicting Lira to weaken as low as 28 per dollar by the end of 2023 if Erdogan doesn’t change his monetary policy of keeping interest rates low, at a time central bank’s fx and gold reserves have been weakening to support the falling Lira.

Turkish central bankers backed by Erdogan’s will, have applied unusual monetary policies to curb inflation that topped nearly 85% last year, cutting interest rates to 8.5% from 19% two years ago despite elevating inflation, to support local businesses and households.

Major global analyst Morgan Stanley is predicting Lira to weaken as low as 28 per dollar by the end of 2023 if Erdogan doesn’t change his monetary policy of keeping interest rates low, at a time central bank’s fx and gold reserves have been weakening to support the falling Lira.

The Lira, which started 2023 trading at around 18.60 per dollar and 19.75 per euro, has been trading in an ongoing downward trend momentum against both major peers, losing nearly 8% this year so far, and losing more than 90% of its value over the past decade with the economy in the clasp of boom-and-bust cycles, record-high inflation to as high as 85% in 2022, and a Lira disaster.

Turkish central bankers backed by Erdogan’s will, have applied unusual monetary policies to curb inflation that topped nearly 85% last year, cutting interest rates to 8.5% from 19% two years ago despite elevating inflation, to support local businesses and households.

Major global analyst Morgan Stanley is predicting Lira to weaken as low as 28 per dollar by the end of 2023 if Erdogan doesn’t change his monetary policy of keeping interest rates low, at a time central bank’s fx and gold reserves have been weakening to support the falling Lira.

The Lira, which started 2023 trading at around 18.60 per dollar and 19.75 per euro, has been trading in an ongoing downward trend momentum against both major peers, losing nearly 8% this year so far, and losing more than 90% of its value over the past decade with the economy in the clasp of boom-and-bust cycles, record-high inflation to as high as 85% in 2022, and a Lira disaster.

Turkish central bankers backed by Erdogan’s will, have applied unusual monetary policies to curb inflation that topped nearly 85% last year, cutting interest rates to 8.5% from 19% two years ago despite elevating inflation, to support local businesses and households.

Major global analyst Morgan Stanley is predicting Lira to weaken as low as 28 per dollar by the end of 2023 if Erdogan doesn’t change his monetary policy of keeping interest rates low, at a time central bank’s fx and gold reserves have been weakening to support the falling Lira.

USD/TRY, Daily chart

The Lira, which started 2023 trading at around 18.60 per dollar and 19.75 per euro, has been trading in an ongoing downward trend momentum against both major peers, losing nearly 8% this year so far, and losing more than 90% of its value over the past decade with the economy in the clasp of boom-and-bust cycles, record-high inflation to as high as 85% in 2022, and a Lira disaster.

Turkish central bankers backed by Erdogan’s will, have applied unusual monetary policies to curb inflation that topped nearly 85% last year, cutting interest rates to 8.5% from 19% two years ago despite elevating inflation, to support local businesses and households.

Major global analyst Morgan Stanley is predicting Lira to weaken as low as 28 per dollar by the end of 2023 if Erdogan doesn’t change his monetary policy of keeping interest rates low, at a time central bank’s fx and gold reserves have been weakening to support the falling Lira.

USD/TRY, Daily chart

The Lira, which started 2023 trading at around 18.60 per dollar and 19.75 per euro, has been trading in an ongoing downward trend momentum against both major peers, losing nearly 8% this year so far, and losing more than 90% of its value over the past decade with the economy in the clasp of boom-and-bust cycles, record-high inflation to as high as 85% in 2022, and a Lira disaster.

Turkish central bankers backed by Erdogan’s will, have applied unusual monetary policies to curb inflation that topped nearly 85% last year, cutting interest rates to 8.5% from 19% two years ago despite elevating inflation, to support local businesses and households.

Major global analyst Morgan Stanley is predicting Lira to weaken as low as 28 per dollar by the end of 2023 if Erdogan doesn’t change his monetary policy of keeping interest rates low, at a time central bank’s fx and gold reserves have been weakening to support the falling Lira.

USD/TRY, Daily chart

The Lira, which started 2023 trading at around 18.60 per dollar and 19.75 per euro, has been trading in an ongoing downward trend momentum against both major peers, losing nearly 8% this year so far, and losing more than 90% of its value over the past decade with the economy in the clasp of boom-and-bust cycles, record-high inflation to as high as 85% in 2022, and a Lira disaster.

Turkish central bankers backed by Erdogan’s will, have applied unusual monetary policies to curb inflation that topped nearly 85% last year, cutting interest rates to 8.5% from 19% two years ago despite elevating inflation, to support local businesses and households.

Major global analyst Morgan Stanley is predicting Lira to weaken as low as 28 per dollar by the end of 2023 if Erdogan doesn’t change his monetary policy of keeping interest rates low, at a time central bank’s fx and gold reserves have been weakening to support the falling Lira.

In this context, the Lira declined as much as 1% to 20,12 per dollar, near a record low hit on Friday, and fell to 21.50 per euro, also near a record low of 21,60 hit last week, as investors believe that the current unorthodox monetary and economic policies, over 40% inflation, the limited FX reserves, and the massively negative real interest rates are not sustainable.

USD/TRY, Daily chart

The Lira, which started 2023 trading at around 18.60 per dollar and 19.75 per euro, has been trading in an ongoing downward trend momentum against both major peers, losing nearly 8% this year so far, and losing more than 90% of its value over the past decade with the economy in the clasp of boom-and-bust cycles, record-high inflation to as high as 85% in 2022, and a Lira disaster.

Turkish central bankers backed by Erdogan’s will, have applied unusual monetary policies to curb inflation that topped nearly 85% last year, cutting interest rates to 8.5% from 19% two years ago despite elevating inflation, to support local businesses and households.

Major global analyst Morgan Stanley is predicting Lira to weaken as low as 28 per dollar by the end of 2023 if Erdogan doesn’t change his monetary policy of keeping interest rates low, at a time central bank’s fx and gold reserves have been weakening to support the falling Lira.

In this context, the Lira declined as much as 1% to 20,12 per dollar, near a record low hit on Friday, and fell to 21.50 per euro, also near a record low of 21,60 hit last week, as investors believe that the current unorthodox monetary and economic policies, over 40% inflation, the limited FX reserves, and the massively negative real interest rates are not sustainable.

USD/TRY, Daily chart

The Lira, which started 2023 trading at around 18.60 per dollar and 19.75 per euro, has been trading in an ongoing downward trend momentum against both major peers, losing nearly 8% this year so far, and losing more than 90% of its value over the past decade with the economy in the clasp of boom-and-bust cycles, record-high inflation to as high as 85% in 2022, and a Lira disaster.

Turkish central bankers backed by Erdogan’s will, have applied unusual monetary policies to curb inflation that topped nearly 85% last year, cutting interest rates to 8.5% from 19% two years ago despite elevating inflation, to support local businesses and households.

Major global analyst Morgan Stanley is predicting Lira to weaken as low as 28 per dollar by the end of 2023 if Erdogan doesn’t change his monetary policy of keeping interest rates low, at a time central bank’s fx and gold reserves have been weakening to support the falling Lira.

Recep Tayyip Erdogan won Sunday’s elections by getting 52% of votes against 48% of his major rival Kemal Kilicdaroglu, extending his time for another 5-year term, spreading his increasingly authoritarian rule into a third decade, and becoming Turkey’s longest-serving leader in the modern history of the country.

In this context, the Lira declined as much as 1% to 20,12 per dollar, near a record low hit on Friday, and fell to 21.50 per euro, also near a record low of 21,60 hit last week, as investors believe that the current unorthodox monetary and economic policies, over 40% inflation, the limited FX reserves, and the massively negative real interest rates are not sustainable.

USD/TRY, Daily chart

The Lira, which started 2023 trading at around 18.60 per dollar and 19.75 per euro, has been trading in an ongoing downward trend momentum against both major peers, losing nearly 8% this year so far, and losing more than 90% of its value over the past decade with the economy in the clasp of boom-and-bust cycles, record-high inflation to as high as 85% in 2022, and a Lira disaster.

Turkish central bankers backed by Erdogan’s will, have applied unusual monetary policies to curb inflation that topped nearly 85% last year, cutting interest rates to 8.5% from 19% two years ago despite elevating inflation, to support local businesses and households.

Major global analyst Morgan Stanley is predicting Lira to weaken as low as 28 per dollar by the end of 2023 if Erdogan doesn’t change his monetary policy of keeping interest rates low, at a time central bank’s fx and gold reserves have been weakening to support the falling Lira.

Recep Tayyip Erdogan won Sunday’s elections by getting 52% of votes against 48% of his major rival Kemal Kilicdaroglu, extending his time for another 5-year term, spreading his increasingly authoritarian rule into a third decade, and becoming Turkey’s longest-serving leader in the modern history of the country.

In this context, the Lira declined as much as 1% to 20,12 per dollar, near a record low hit on Friday, and fell to 21.50 per euro, also near a record low of 21,60 hit last week, as investors believe that the current unorthodox monetary and economic policies, over 40% inflation, the limited FX reserves, and the massively negative real interest rates are not sustainable.

USD/TRY, Daily chart

The Lira, which started 2023 trading at around 18.60 per dollar and 19.75 per euro, has been trading in an ongoing downward trend momentum against both major peers, losing nearly 8% this year so far, and losing more than 90% of its value over the past decade with the economy in the clasp of boom-and-bust cycles, record-high inflation to as high as 85% in 2022, and a Lira disaster.

Turkish central bankers backed by Erdogan’s will, have applied unusual monetary policies to curb inflation that topped nearly 85% last year, cutting interest rates to 8.5% from 19% two years ago despite elevating inflation, to support local businesses and households.

Major global analyst Morgan Stanley is predicting Lira to weaken as low as 28 per dollar by the end of 2023 if Erdogan doesn’t change his monetary policy of keeping interest rates low, at a time central bank’s fx and gold reserves have been weakening to support the falling Lira.

Turkish Lira hit a fresh record low of $20,10 a dollar on Monday morning, extending yearly losses as foreign investors worry that the outlook of the local economy will be negative after the re-election of President Erdogan on the 2nd round of the presidential election on Sunday, May 28.

Recep Tayyip Erdogan won Sunday’s elections by getting 52% of votes against 48% of his major rival Kemal Kilicdaroglu, extending his time for another 5-year term, spreading his increasingly authoritarian rule into a third decade, and becoming Turkey’s longest-serving leader in the modern history of the country.

In this context, the Lira declined as much as 1% to 20,12 per dollar, near a record low hit on Friday, and fell to 21.50 per euro, also near a record low of 21,60 hit last week, as investors believe that the current unorthodox monetary and economic policies, over 40% inflation, the limited FX reserves, and the massively negative real interest rates are not sustainable.

USD/TRY, Daily chart

The Lira, which started 2023 trading at around 18.60 per dollar and 19.75 per euro, has been trading in an ongoing downward trend momentum against both major peers, losing nearly 8% this year so far, and losing more than 90% of its value over the past decade with the economy in the clasp of boom-and-bust cycles, record-high inflation to as high as 85% in 2022, and a Lira disaster.

Turkish central bankers backed by Erdogan’s will, have applied unusual monetary policies to curb inflation that topped nearly 85% last year, cutting interest rates to 8.5% from 19% two years ago despite elevating inflation, to support local businesses and households.

Major global analyst Morgan Stanley is predicting Lira to weaken as low as 28 per dollar by the end of 2023 if Erdogan doesn’t change his monetary policy of keeping interest rates low, at a time central bank’s fx and gold reserves have been weakening to support the falling Lira.

Turkish Lira hit a fresh record low of $20,10 a dollar on Monday morning, extending yearly losses as foreign investors worry that the outlook of the local economy will be negative after the re-election of President Erdogan on the 2nd round of the presidential election on Sunday, May 28.

Recep Tayyip Erdogan won Sunday’s elections by getting 52% of votes against 48% of his major rival Kemal Kilicdaroglu, extending his time for another 5-year term, spreading his increasingly authoritarian rule into a third decade, and becoming Turkey’s longest-serving leader in the modern history of the country.

In this context, the Lira declined as much as 1% to 20,12 per dollar, near a record low hit on Friday, and fell to 21.50 per euro, also near a record low of 21,60 hit last week, as investors believe that the current unorthodox monetary and economic policies, over 40% inflation, the limited FX reserves, and the massively negative real interest rates are not sustainable.

USD/TRY, Daily chart

The Lira, which started 2023 trading at around 18.60 per dollar and 19.75 per euro, has been trading in an ongoing downward trend momentum against both major peers, losing nearly 8% this year so far, and losing more than 90% of its value over the past decade with the economy in the clasp of boom-and-bust cycles, record-high inflation to as high as 85% in 2022, and a Lira disaster.

Turkish central bankers backed by Erdogan’s will, have applied unusual monetary policies to curb inflation that topped nearly 85% last year, cutting interest rates to 8.5% from 19% two years ago despite elevating inflation, to support local businesses and households.

Major global analyst Morgan Stanley is predicting Lira to weaken as low as 28 per dollar by the end of 2023 if Erdogan doesn’t change his monetary policy of keeping interest rates low, at a time central bank’s fx and gold reserves have been weakening to support the falling Lira.

Nvidia’s 24% gain fuels a strong rally in AI-related tech companies

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

 

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

Adding to that, the mega-cap AI players Microsoft and Alphabet rose 3.85% to $325 and 2.13% to $123 respectively, Advanced Micro Devices-AMD jumped about 11% to $120, Micron Technology-MU added 4.6% to $69, and Broadcom-AVGO climbed more than 7% to $728.

 

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

Adding to that, the mega-cap AI players Microsoft and Alphabet rose 3.85% to $325 and 2.13% to $123 respectively, Advanced Micro Devices-AMD jumped about 11% to $120, Micron Technology-MU added 4.6% to $69, and Broadcom-AVGO climbed more than 7% to $728.

 

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

The Philadelphia SE Semiconductor index-SOX soared 6.8% to its highest level in more than a year in its biggest daily percentage rise since November given the bullish momentum on the sector as investors increased interest in the artificial intelligence race.

Adding to that, the mega-cap AI players Microsoft and Alphabet rose 3.85% to $325 and 2.13% to $123 respectively, Advanced Micro Devices-AMD jumped about 11% to $120, Micron Technology-MU added 4.6% to $69, and Broadcom-AVGO climbed more than 7% to $728.

 

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

The Philadelphia SE Semiconductor index-SOX soared 6.8% to its highest level in more than a year in its biggest daily percentage rise since November given the bullish momentum on the sector as investors increased interest in the artificial intelligence race.

Adding to that, the mega-cap AI players Microsoft and Alphabet rose 3.85% to $325 and 2.13% to $123 respectively, Advanced Micro Devices-AMD jumped about 11% to $120, Micron Technology-MU added 4.6% to $69, and Broadcom-AVGO climbed more than 7% to $728.

 

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

In this AI frenzy, tech-heavy Nasdaq Composite ended sharply higher by 1.7% to 12,698 points on Thursday as the positive earnings from NVIDIA boosted tech stocks that are exposed to the red-hot Artificial Intelligence (AI) space and other tech stocks that are exposed to them.

The Philadelphia SE Semiconductor index-SOX soared 6.8% to its highest level in more than a year in its biggest daily percentage rise since November given the bullish momentum on the sector as investors increased interest in the artificial intelligence race.

Adding to that, the mega-cap AI players Microsoft and Alphabet rose 3.85% to $325 and 2.13% to $123 respectively, Advanced Micro Devices-AMD jumped about 11% to $120, Micron Technology-MU added 4.6% to $69, and Broadcom-AVGO climbed more than 7% to $728.

 

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

In this AI frenzy, tech-heavy Nasdaq Composite ended sharply higher by 1.7% to 12,698 points on Thursday as the positive earnings from NVIDIA boosted tech stocks that are exposed to the red-hot Artificial Intelligence (AI) space and other tech stocks that are exposed to them.

The Philadelphia SE Semiconductor index-SOX soared 6.8% to its highest level in more than a year in its biggest daily percentage rise since November given the bullish momentum on the sector as investors increased interest in the artificial intelligence race.

Adding to that, the mega-cap AI players Microsoft and Alphabet rose 3.85% to $325 and 2.13% to $123 respectively, Advanced Micro Devices-AMD jumped about 11% to $120, Micron Technology-MU added 4.6% to $69, and Broadcom-AVGO climbed more than 7% to $728.

 

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

Nvidia stock, Weekly chart

In this AI frenzy, tech-heavy Nasdaq Composite ended sharply higher by 1.7% to 12,698 points on Thursday as the positive earnings from NVIDIA boosted tech stocks that are exposed to the red-hot Artificial Intelligence (AI) space and other tech stocks that are exposed to them.

The Philadelphia SE Semiconductor index-SOX soared 6.8% to its highest level in more than a year in its biggest daily percentage rise since November given the bullish momentum on the sector as investors increased interest in the artificial intelligence race.

Adding to that, the mega-cap AI players Microsoft and Alphabet rose 3.85% to $325 and 2.13% to $123 respectively, Advanced Micro Devices-AMD jumped about 11% to $120, Micron Technology-MU added 4.6% to $69, and Broadcom-AVGO climbed more than 7% to $728.

 

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

Nvidia stock, Weekly chart

In this AI frenzy, tech-heavy Nasdaq Composite ended sharply higher by 1.7% to 12,698 points on Thursday as the positive earnings from NVIDIA boosted tech stocks that are exposed to the red-hot Artificial Intelligence (AI) space and other tech stocks that are exposed to them.

The Philadelphia SE Semiconductor index-SOX soared 6.8% to its highest level in more than a year in its biggest daily percentage rise since November given the bullish momentum on the sector as investors increased interest in the artificial intelligence race.

Adding to that, the mega-cap AI players Microsoft and Alphabet rose 3.85% to $325 and 2.13% to $123 respectively, Advanced Micro Devices-AMD jumped about 11% to $120, Micron Technology-MU added 4.6% to $69, and Broadcom-AVGO climbed more than 7% to $728.

 

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

Nvidia stock, Weekly chart

In this AI frenzy, tech-heavy Nasdaq Composite ended sharply higher by 1.7% to 12,698 points on Thursday as the positive earnings from NVIDIA boosted tech stocks that are exposed to the red-hot Artificial Intelligence (AI) space and other tech stocks that are exposed to them.

The Philadelphia SE Semiconductor index-SOX soared 6.8% to its highest level in more than a year in its biggest daily percentage rise since November given the bullish momentum on the sector as investors increased interest in the artificial intelligence race.

Adding to that, the mega-cap AI players Microsoft and Alphabet rose 3.85% to $325 and 2.13% to $123 respectively, Advanced Micro Devices-AMD jumped about 11% to $120, Micron Technology-MU added 4.6% to $69, and Broadcom-AVGO climbed more than 7% to $728.

 

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

Nvidia Corp soared 24% to a record high close of $379, becoming the world’s most valuable listed chipmaker with a market cap of $940 billion after the company forecasted quarterly revenue 50% higher than estimates and said it was ramping up supply to meet the demand for its artificial intelligence (AI) chips.

Nvidia stock, Weekly chart

In this AI frenzy, tech-heavy Nasdaq Composite ended sharply higher by 1.7% to 12,698 points on Thursday as the positive earnings from NVIDIA boosted tech stocks that are exposed to the red-hot Artificial Intelligence (AI) space and other tech stocks that are exposed to them.

The Philadelphia SE Semiconductor index-SOX soared 6.8% to its highest level in more than a year in its biggest daily percentage rise since November given the bullish momentum on the sector as investors increased interest in the artificial intelligence race.

Adding to that, the mega-cap AI players Microsoft and Alphabet rose 3.85% to $325 and 2.13% to $123 respectively, Advanced Micro Devices-AMD jumped about 11% to $120, Micron Technology-MU added 4.6% to $69, and Broadcom-AVGO climbed more than 7% to $728.

 

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

Nvidia Corp soared 24% to a record high close of $379, becoming the world’s most valuable listed chipmaker with a market cap of $940 billion after the company forecasted quarterly revenue 50% higher than estimates and said it was ramping up supply to meet the demand for its artificial intelligence (AI) chips.

Nvidia stock, Weekly chart

In this AI frenzy, tech-heavy Nasdaq Composite ended sharply higher by 1.7% to 12,698 points on Thursday as the positive earnings from NVIDIA boosted tech stocks that are exposed to the red-hot Artificial Intelligence (AI) space and other tech stocks that are exposed to them.

The Philadelphia SE Semiconductor index-SOX soared 6.8% to its highest level in more than a year in its biggest daily percentage rise since November given the bullish momentum on the sector as investors increased interest in the artificial intelligence race.

Adding to that, the mega-cap AI players Microsoft and Alphabet rose 3.85% to $325 and 2.13% to $123 respectively, Advanced Micro Devices-AMD jumped about 11% to $120, Micron Technology-MU added 4.6% to $69, and Broadcom-AVGO climbed more than 7% to $728.

 

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

All eyes were on the technology sector yesterday as chipmaker Nvidia’s 24% gain ignited a strong rally into other Artificial Intelligence (AI)-exposed tech companies, and chip-heavy indices, and it increased the optimism in the technology sector against the current economic and political uncertainty.

Nvidia Corp soared 24% to a record high close of $379, becoming the world’s most valuable listed chipmaker with a market cap of $940 billion after the company forecasted quarterly revenue 50% higher than estimates and said it was ramping up supply to meet the demand for its artificial intelligence (AI) chips.

Nvidia stock, Weekly chart

In this AI frenzy, tech-heavy Nasdaq Composite ended sharply higher by 1.7% to 12,698 points on Thursday as the positive earnings from NVIDIA boosted tech stocks that are exposed to the red-hot Artificial Intelligence (AI) space and other tech stocks that are exposed to them.

The Philadelphia SE Semiconductor index-SOX soared 6.8% to its highest level in more than a year in its biggest daily percentage rise since November given the bullish momentum on the sector as investors increased interest in the artificial intelligence race.

Adding to that, the mega-cap AI players Microsoft and Alphabet rose 3.85% to $325 and 2.13% to $123 respectively, Advanced Micro Devices-AMD jumped about 11% to $120, Micron Technology-MU added 4.6% to $69, and Broadcom-AVGO climbed more than 7% to $728.

 

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

All eyes were on the technology sector yesterday as chipmaker Nvidia’s 24% gain ignited a strong rally into other Artificial Intelligence (AI)-exposed tech companies, and chip-heavy indices, and it increased the optimism in the technology sector against the current economic and political uncertainty.

Nvidia Corp soared 24% to a record high close of $379, becoming the world’s most valuable listed chipmaker with a market cap of $940 billion after the company forecasted quarterly revenue 50% higher than estimates and said it was ramping up supply to meet the demand for its artificial intelligence (AI) chips.

Nvidia stock, Weekly chart

In this AI frenzy, tech-heavy Nasdaq Composite ended sharply higher by 1.7% to 12,698 points on Thursday as the positive earnings from NVIDIA boosted tech stocks that are exposed to the red-hot Artificial Intelligence (AI) space and other tech stocks that are exposed to them.

The Philadelphia SE Semiconductor index-SOX soared 6.8% to its highest level in more than a year in its biggest daily percentage rise since November given the bullish momentum on the sector as investors increased interest in the artificial intelligence race.

Adding to that, the mega-cap AI players Microsoft and Alphabet rose 3.85% to $325 and 2.13% to $123 respectively, Advanced Micro Devices-AMD jumped about 11% to $120, Micron Technology-MU added 4.6% to $69, and Broadcom-AVGO climbed more than 7% to $728.

 

Artificial Intelligence (AI) frenzy:

Tech investors have turned to Artificial Intelligence (AI) space since last November when Microsoft-backed OpenAI released its ChatGPT bot.

Generative Artificial Intelligence (AI) is the technology that runs by ChatGPT that learns from analyzing vast datasets to generate text, images, and computer code, while businesses are trying to use generative AI to speed up video editing, recruitment, and even legal work.

Shares in Nvidia, AMD, and TSM which makes computer chips that train AI systems, have almost doubled since ChatGPT’s launch six months ago, while mega-cap stocks Microsoft, Micron, Broadcom, and Alphabet have gained over 50% in the same period.

U.S. dollar rises across the board on hawkish Fed and demand for safety

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

The resilient employment sector and the U.S. economy led investors to believe that Federal Reserve will leave interest rates higher for longer in its fight against persistent inflation, especially the Core inflation which is still soaring.

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

Adding to the above, China-exposed and commodities-sensitive currencies also retreated against the dollar, with the Australian and New Zealand dollars falling to a six-month low of $0.6530 and $0.6090 respectively.

The resilient employment sector and the U.S. economy led investors to believe that Federal Reserve will leave interest rates higher for longer in its fight against persistent inflation, especially the Core inflation which is still soaring.

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

Adding to the above, China-exposed and commodities-sensitive currencies also retreated against the dollar, with the Australian and New Zealand dollars falling to a six-month low of $0.6530 and $0.6090 respectively.

The resilient employment sector and the U.S. economy led investors to believe that Federal Reserve will leave interest rates higher for longer in its fight against persistent inflation, especially the Core inflation which is still soaring.

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

The dollar has also risen above the key 7 psychological level to the Chinese Yuan amid growing worries about the Chinese post-pandemic economic recovery and concerns over a renewed COVID wave in the country.

Adding to the above, China-exposed and commodities-sensitive currencies also retreated against the dollar, with the Australian and New Zealand dollars falling to a six-month low of $0.6530 and $0.6090 respectively.

The resilient employment sector and the U.S. economy led investors to believe that Federal Reserve will leave interest rates higher for longer in its fight against persistent inflation, especially the Core inflation which is still soaring.

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

The dollar has also risen above the key 7 psychological level to the Chinese Yuan amid growing worries about the Chinese post-pandemic economic recovery and concerns over a renewed COVID wave in the country.

Adding to the above, China-exposed and commodities-sensitive currencies also retreated against the dollar, with the Australian and New Zealand dollars falling to a six-month low of $0.6530 and $0.6090 respectively.

The resilient employment sector and the U.S. economy led investors to believe that Federal Reserve will leave interest rates higher for longer in its fight against persistent inflation, especially the Core inflation which is still soaring.

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

The bullish momentum has helped the dollar rise to a three-month high of $1.073 against the euro, to two-month highs of $1.2340 against the pound sterling, and a six-month peak of nearly ¥140 versus the Japanese Yen.

The dollar has also risen above the key 7 psychological level to the Chinese Yuan amid growing worries about the Chinese post-pandemic economic recovery and concerns over a renewed COVID wave in the country.

Adding to the above, China-exposed and commodities-sensitive currencies also retreated against the dollar, with the Australian and New Zealand dollars falling to a six-month low of $0.6530 and $0.6090 respectively.

The resilient employment sector and the U.S. economy led investors to believe that Federal Reserve will leave interest rates higher for longer in its fight against persistent inflation, especially the Core inflation which is still soaring.

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

The bullish momentum has helped the dollar rise to a three-month high of $1.073 against the euro, to two-month highs of $1.2340 against the pound sterling, and a six-month peak of nearly ¥140 versus the Japanese Yen.

The dollar has also risen above the key 7 psychological level to the Chinese Yuan amid growing worries about the Chinese post-pandemic economic recovery and concerns over a renewed COVID wave in the country.

Adding to the above, China-exposed and commodities-sensitive currencies also retreated against the dollar, with the Australian and New Zealand dollars falling to a six-month low of $0.6530 and $0.6090 respectively.

The resilient employment sector and the U.S. economy led investors to believe that Federal Reserve will leave interest rates higher for longer in its fight against persistent inflation, especially the Core inflation which is still soaring.

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

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

The bullish momentum has helped the dollar rise to a three-month high of $1.073 against the euro, to two-month highs of $1.2340 against the pound sterling, and a six-month peak of nearly ¥140 versus the Japanese Yen.

The dollar has also risen above the key 7 psychological level to the Chinese Yuan amid growing worries about the Chinese post-pandemic economic recovery and concerns over a renewed COVID wave in the country.

Adding to the above, China-exposed and commodities-sensitive currencies also retreated against the dollar, with the Australian and New Zealand dollars falling to a six-month low of $0.6530 and $0.6090 respectively.

The resilient employment sector and the U.S. economy led investors to believe that Federal Reserve will leave interest rates higher for longer in its fight against persistent inflation, especially the Core inflation which is still soaring.

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

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

The bullish momentum has helped the dollar rise to a three-month high of $1.073 against the euro, to two-month highs of $1.2340 against the pound sterling, and a six-month peak of nearly ¥140 versus the Japanese Yen.

The dollar has also risen above the key 7 psychological level to the Chinese Yuan amid growing worries about the Chinese post-pandemic economic recovery and concerns over a renewed COVID wave in the country.

Adding to the above, China-exposed and commodities-sensitive currencies also retreated against the dollar, with the Australian and New Zealand dollars falling to a six-month low of $0.6530 and $0.6090 respectively.

The resilient employment sector and the U.S. economy led investors to believe that Federal Reserve will leave interest rates higher for longer in its fight against persistent inflation, especially the Core inflation which is still soaring.

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

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

The bullish momentum has helped the dollar rise to a three-month high of $1.073 against the euro, to two-month highs of $1.2340 against the pound sterling, and a six-month peak of nearly ¥140 versus the Japanese Yen.

The dollar has also risen above the key 7 psychological level to the Chinese Yuan amid growing worries about the Chinese post-pandemic economic recovery and concerns over a renewed COVID wave in the country.

Adding to the above, China-exposed and commodities-sensitive currencies also retreated against the dollar, with the Australian and New Zealand dollars falling to a six-month low of $0.6530 and $0.6090 respectively.

The resilient employment sector and the U.S. economy led investors to believe that Federal Reserve will leave interest rates higher for longer in its fight against persistent inflation, especially the Core inflation which is still soaring.

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

DXY-U.S. dollar index which tracks the greenback against six major currencies, has recovered above the 104 level on Thursday morning for the first time since early March, and managing to recover the half losses of March-April’s U.S. banking turmoil.

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

The bullish momentum has helped the dollar rise to a three-month high of $1.073 against the euro, to two-month highs of $1.2340 against the pound sterling, and a six-month peak of nearly ¥140 versus the Japanese Yen.

The dollar has also risen above the key 7 psychological level to the Chinese Yuan amid growing worries about the Chinese post-pandemic economic recovery and concerns over a renewed COVID wave in the country.

Adding to the above, China-exposed and commodities-sensitive currencies also retreated against the dollar, with the Australian and New Zealand dollars falling to a six-month low of $0.6530 and $0.6090 respectively.

The resilient employment sector and the U.S. economy led investors to believe that Federal Reserve will leave interest rates higher for longer in its fight against persistent inflation, especially the Core inflation which is still soaring.

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

DXY-U.S. dollar index which tracks the greenback against six major currencies, has recovered above the 104 level on Thursday morning for the first time since early March, and managing to recover the half losses of March-April’s U.S. banking turmoil.

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

The bullish momentum has helped the dollar rise to a three-month high of $1.073 against the euro, to two-month highs of $1.2340 against the pound sterling, and a six-month peak of nearly ¥140 versus the Japanese Yen.

The dollar has also risen above the key 7 psychological level to the Chinese Yuan amid growing worries about the Chinese post-pandemic economic recovery and concerns over a renewed COVID wave in the country.

Adding to the above, China-exposed and commodities-sensitive currencies also retreated against the dollar, with the Australian and New Zealand dollars falling to a six-month low of $0.6530 and $0.6090 respectively.

The resilient employment sector and the U.S. economy led investors to believe that Federal Reserve will leave interest rates higher for longer in its fight against persistent inflation, especially the Core inflation which is still soaring.

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

The U.S. dollar thrives in May (so far) driven by some hawkish comments from Fed officials, coupled win an increasing demand for safety among investors on economic and political uncertainties around the world, posting a series of multi-month highs against major peers.

DXY-U.S. dollar index which tracks the greenback against six major currencies, has recovered above the 104 level on Thursday morning for the first time since early March, and managing to recover the half losses of March-April’s U.S. banking turmoil.

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

The bullish momentum has helped the dollar rise to a three-month high of $1.073 against the euro, to two-month highs of $1.2340 against the pound sterling, and a six-month peak of nearly ¥140 versus the Japanese Yen.

The dollar has also risen above the key 7 psychological level to the Chinese Yuan amid growing worries about the Chinese post-pandemic economic recovery and concerns over a renewed COVID wave in the country.

Adding to the above, China-exposed and commodities-sensitive currencies also retreated against the dollar, with the Australian and New Zealand dollars falling to a six-month low of $0.6530 and $0.6090 respectively.

The resilient employment sector and the U.S. economy led investors to believe that Federal Reserve will leave interest rates higher for longer in its fight against persistent inflation, especially the Core inflation which is still soaring.

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

The U.S. dollar thrives in May (so far) driven by some hawkish comments from Fed officials, coupled win an increasing demand for safety among investors on economic and political uncertainties around the world, posting a series of multi-month highs against major peers.

DXY-U.S. dollar index which tracks the greenback against six major currencies, has recovered above the 104 level on Thursday morning for the first time since early March, and managing to recover the half losses of March-April’s U.S. banking turmoil.

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

The bullish momentum has helped the dollar rise to a three-month high of $1.073 against the euro, to two-month highs of $1.2340 against the pound sterling, and a six-month peak of nearly ¥140 versus the Japanese Yen.

The dollar has also risen above the key 7 psychological level to the Chinese Yuan amid growing worries about the Chinese post-pandemic economic recovery and concerns over a renewed COVID wave in the country.

Adding to the above, China-exposed and commodities-sensitive currencies also retreated against the dollar, with the Australian and New Zealand dollars falling to a six-month low of $0.6530 and $0.6090 respectively.

The resilient employment sector and the U.S. economy led investors to believe that Federal Reserve will leave interest rates higher for longer in its fight against persistent inflation, especially the Core inflation which is still soaring.

Investors have also demanded the dollar’s safety against gold and bonds, following the failure of the Biden administration and Congress officials to deal with the increase of the U.S. debt ceiling before the deadline of June 1, when the Treasury has warned it would be unable to pay all its bills.

Sterling fluctuates after slower-than-expected fall of the UK inflation

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

UK inflation had remained above 10% for eight of the past nine months, worsened by soaring energy, and food costs, and shortages in the labor market linked to Brexit, which was keeping wages high.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

 

UK inflation had remained above 10% for eight of the past nine months, worsened by soaring energy, and food costs, and shortages in the labor market linked to Brexit, which was keeping wages high.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

 

UK inflation had remained above 10% for eight of the past nine months, worsened by soaring energy, and food costs, and shortages in the labor market linked to Brexit, which was keeping wages high.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

 

UK inflation had remained above 10% for eight of the past nine months, worsened by soaring energy, and food costs, and shortages in the labor market linked to Brexit, which was keeping wages high.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

The largest contributor to the decline was housing and household services, which owes to a steep fall in natural gas and electricity prices, as per the chart below:

 

UK inflation had remained above 10% for eight of the past nine months, worsened by soaring energy, and food costs, and shortages in the labor market linked to Brexit, which was keeping wages high.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

The largest contributor to the decline was housing and household services, which owes to a steep fall in natural gas and electricity prices, as per the chart below:

 

UK inflation had remained above 10% for eight of the past nine months, worsened by soaring energy, and food costs, and shortages in the labor market linked to Brexit, which was keeping wages high.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

Even though U.K. headline annual inflation may have slowed in April at 8.7% from 10.1% in March, it is still above market expectations of a fall at 8.2%, unlikely what BOE governor Bailey was hoping for when he said that “inflation has turned the corner” in his remarks yesterday.

The largest contributor to the decline was housing and household services, which owes to a steep fall in natural gas and electricity prices, as per the chart below:

 

UK inflation had remained above 10% for eight of the past nine months, worsened by soaring energy, and food costs, and shortages in the labor market linked to Brexit, which was keeping wages high.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

Even though U.K. headline annual inflation may have slowed in April at 8.7% from 10.1% in March, it is still above market expectations of a fall at 8.2%, unlikely what BOE governor Bailey was hoping for when he said that “inflation has turned the corner” in his remarks yesterday.

The largest contributor to the decline was housing and household services, which owes to a steep fall in natural gas and electricity prices, as per the chart below:

 

UK inflation had remained above 10% for eight of the past nine months, worsened by soaring energy, and food costs, and shortages in the labor market linked to Brexit, which was keeping wages high.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

Even though U.K. headline annual inflation may have slowed in April at 8.7% from 10.1% in March, it is still above market expectations of a fall at 8.2%, unlikely what BOE governor Bailey was hoping for when he said that “inflation has turned the corner” in his remarks yesterday.

The largest contributor to the decline was housing and household services, which owes to a steep fall in natural gas and electricity prices, as per the chart below:

 

UK inflation had remained above 10% for eight of the past nine months, worsened by soaring energy, and food costs, and shortages in the labor market linked to Brexit, which was keeping wages high.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

Even though U.K. headline annual inflation may have slowed in April at 8.7% from 10.1% in March, it is still above market expectations of a fall at 8.2%, unlikely what BOE governor Bailey was hoping for when he said that “inflation has turned the corner” in his remarks yesterday.

The largest contributor to the decline was housing and household services, which owes to a steep fall in natural gas and electricity prices, as per the chart below:

 

UK inflation had remained above 10% for eight of the past nine months, worsened by soaring energy, and food costs, and shortages in the labor market linked to Brexit, which was keeping wages high.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

However, the Sterling gave back some of those initial gains retreating to the $1.24 mark, after investors saw that headline inflation slowed less-than-expected, while Core inflation jumped higher than expected, which is adding pressure on the Bank of England for more rate hikes to curb resilient inflation.

Even though U.K. headline annual inflation may have slowed in April at 8.7% from 10.1% in March, it is still above market expectations of a fall at 8.2%, unlikely what BOE governor Bailey was hoping for when he said that “inflation has turned the corner” in his remarks yesterday.

The largest contributor to the decline was housing and household services, which owes to a steep fall in natural gas and electricity prices, as per the chart below:

 

UK inflation had remained above 10% for eight of the past nine months, worsened by soaring energy, and food costs, and shortages in the labor market linked to Brexit, which was keeping wages high.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

However, the Sterling gave back some of those initial gains retreating to the $1.24 mark, after investors saw that headline inflation slowed less-than-expected, while Core inflation jumped higher than expected, which is adding pressure on the Bank of England for more rate hikes to curb resilient inflation.

Even though U.K. headline annual inflation may have slowed in April at 8.7% from 10.1% in March, it is still above market expectations of a fall at 8.2%, unlikely what BOE governor Bailey was hoping for when he said that “inflation has turned the corner” in his remarks yesterday.

The largest contributor to the decline was housing and household services, which owes to a steep fall in natural gas and electricity prices, as per the chart below:

 

UK inflation had remained above 10% for eight of the past nine months, worsened by soaring energy, and food costs, and shortages in the labor market linked to Brexit, which was keeping wages high.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

Pound Sterling initially jumped as high as $1.2470 a dollar on Wednesday morning after the release of the report that showed UK inflation fell below 10% in April, with investors cheering the fall in single digits.

However, the Sterling gave back some of those initial gains retreating to the $1.24 mark, after investors saw that headline inflation slowed less-than-expected, while Core inflation jumped higher than expected, which is adding pressure on the Bank of England for more rate hikes to curb resilient inflation.

Even though U.K. headline annual inflation may have slowed in April at 8.7% from 10.1% in March, it is still above market expectations of a fall at 8.2%, unlikely what BOE governor Bailey was hoping for when he said that “inflation has turned the corner” in his remarks yesterday.

The largest contributor to the decline was housing and household services, which owes to a steep fall in natural gas and electricity prices, as per the chart below:

 

UK inflation had remained above 10% for eight of the past nine months, worsened by soaring energy, and food costs, and shortages in the labor market linked to Brexit, which was keeping wages high.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

Pound Sterling initially jumped as high as $1.2470 a dollar on Wednesday morning after the release of the report that showed UK inflation fell below 10% in April, with investors cheering the fall in single digits.

However, the Sterling gave back some of those initial gains retreating to the $1.24 mark, after investors saw that headline inflation slowed less-than-expected, while Core inflation jumped higher than expected, which is adding pressure on the Bank of England for more rate hikes to curb resilient inflation.

Even though U.K. headline annual inflation may have slowed in April at 8.7% from 10.1% in March, it is still above market expectations of a fall at 8.2%, unlikely what BOE governor Bailey was hoping for when he said that “inflation has turned the corner” in his remarks yesterday.

The largest contributor to the decline was housing and household services, which owes to a steep fall in natural gas and electricity prices, as per the chart below:

 

UK inflation had remained above 10% for eight of the past nine months, worsened by soaring energy, and food costs, and shortages in the labor market linked to Brexit, which was keeping wages high.

In the same period, inflation rates slowed to 5% in the U.S. and 6.9% in Eurozone, indicating that the UK economy is experiencing the highest rate of inflation among Group of Seven advanced economies along with Italy, despite the falling energy prices.

 

Sticky Core Inflation in April:

The closely watched Core inflation, which excludes volatile food, energy, alcohol, and tobacco prices, jumped up to 6.8% y-y in April 2023, its highest since March 1992, creating a big headage for the Bank of England.

BoE’s rate hikes to 4.50% and the prolonged tightening cycle seem to have failed to pause the elevating Core inflation in the UK, with investors now expecting another 25bps rate hike next month to 4.75% (June 22).

Bank of England Governor Andrew Bailey is set to speak later in the day, and he could give some signals about future monetary plans to get inflation down.

However, it’s not clear whether BoE can hike more, since it could create an adverse impact to the economic outlook for the UK, especially after weak PMI Manufacturing activity in April which came at 46.9 vs 47.9 market expectation.

Copper hits a seven-month low of $3.61/lb on deteriorating demand outlook

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

Overall, the copper demand outlook is deteriorating as global growth slows in the face of rising interest rates which boost borrowing costs, and resilient Core inflation, despite the recent weakness in crude oil and natural gas prices.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

Overall, the copper demand outlook is deteriorating as global growth slows in the face of rising interest rates which boost borrowing costs, and resilient Core inflation, despite the recent weakness in crude oil and natural gas prices.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

The manufacturing conditions have been deteriorating around the world, hitting multi-month lows according to official data, dragged down by the slump in Chinese manufacturing that has begun in the second quarter of the year as China’s post-pandemic economic recovery eased, battering copper.

Overall, the copper demand outlook is deteriorating as global growth slows in the face of rising interest rates which boost borrowing costs, and resilient Core inflation, despite the recent weakness in crude oil and natural gas prices.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

The manufacturing conditions have been deteriorating around the world, hitting multi-month lows according to official data, dragged down by the slump in Chinese manufacturing that has begun in the second quarter of the year as China’s post-pandemic economic recovery eased, battering copper.

Overall, the copper demand outlook is deteriorating as global growth slows in the face of rising interest rates which boost borrowing costs, and resilient Core inflation, despite the recent weakness in crude oil and natural gas prices.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

Adding to China’s industrial weakness, commodities investors have been worrying about slowing economic growth in USA and Eurozone (mainly France & Germany), the world’s second and third economies, following the weak readings for flash manufacturing PMI, construction, and home sales.

The manufacturing conditions have been deteriorating around the world, hitting multi-month lows according to official data, dragged down by the slump in Chinese manufacturing that has begun in the second quarter of the year as China’s post-pandemic economic recovery eased, battering copper.

Overall, the copper demand outlook is deteriorating as global growth slows in the face of rising interest rates which boost borrowing costs, and resilient Core inflation, despite the recent weakness in crude oil and natural gas prices.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

Adding to China’s industrial weakness, commodities investors have been worrying about slowing economic growth in USA and Eurozone (mainly France & Germany), the world’s second and third economies, following the weak readings for flash manufacturing PMI, construction, and home sales.

The manufacturing conditions have been deteriorating around the world, hitting multi-month lows according to official data, dragged down by the slump in Chinese manufacturing that has begun in the second quarter of the year as China’s post-pandemic economic recovery eased, battering copper.

Overall, the copper demand outlook is deteriorating as global growth slows in the face of rising interest rates which boost borrowing costs, and resilient Core inflation, despite the recent weakness in crude oil and natural gas prices.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

Copper, Daily chart

Adding to China’s industrial weakness, commodities investors have been worrying about slowing economic growth in USA and Eurozone (mainly France & Germany), the world’s second and third economies, following the weak readings for flash manufacturing PMI, construction, and home sales.

The manufacturing conditions have been deteriorating around the world, hitting multi-month lows according to official data, dragged down by the slump in Chinese manufacturing that has begun in the second quarter of the year as China’s post-pandemic economic recovery eased, battering copper.

Overall, the copper demand outlook is deteriorating as global growth slows in the face of rising interest rates which boost borrowing costs, and resilient Core inflation, despite the recent weakness in crude oil and natural gas prices.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

Copper, Daily chart

Adding to China’s industrial weakness, commodities investors have been worrying about slowing economic growth in USA and Eurozone (mainly France & Germany), the world’s second and third economies, following the weak readings for flash manufacturing PMI, construction, and home sales.

The manufacturing conditions have been deteriorating around the world, hitting multi-month lows according to official data, dragged down by the slump in Chinese manufacturing that has begun in the second quarter of the year as China’s post-pandemic economic recovery eased, battering copper.

Overall, the copper demand outlook is deteriorating as global growth slows in the face of rising interest rates which boost borrowing costs, and resilient Core inflation, despite the recent weakness in crude oil and natural gas prices.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

Copper, Daily chart

Adding to China’s industrial weakness, commodities investors have been worrying about slowing economic growth in USA and Eurozone (mainly France & Germany), the world’s second and third economies, following the weak readings for flash manufacturing PMI, construction, and home sales.

The manufacturing conditions have been deteriorating around the world, hitting multi-month lows according to official data, dragged down by the slump in Chinese manufacturing that has begun in the second quarter of the year as China’s post-pandemic economic recovery eased, battering copper.

Overall, the copper demand outlook is deteriorating as global growth slows in the face of rising interest rates which boost borrowing costs, and resilient Core inflation, despite the recent weakness in crude oil and natural gas prices.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

The price of red metal fell as low as $3,61/lb on Tuesday morning, or 1.5% down, its lowest since November 2022, following steep losses of nearly 15% since intraday highs of April, after a string of disappointing economic readings from China, the world’s largest copper consumer, pointing to a weak outlook for copper demand.

Copper, Daily chart

Adding to China’s industrial weakness, commodities investors have been worrying about slowing economic growth in USA and Eurozone (mainly France & Germany), the world’s second and third economies, following the weak readings for flash manufacturing PMI, construction, and home sales.

The manufacturing conditions have been deteriorating around the world, hitting multi-month lows according to official data, dragged down by the slump in Chinese manufacturing that has begun in the second quarter of the year as China’s post-pandemic economic recovery eased, battering copper.

Overall, the copper demand outlook is deteriorating as global growth slows in the face of rising interest rates which boost borrowing costs, and resilient Core inflation, despite the recent weakness in crude oil and natural gas prices.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

The price of red metal fell as low as $3,61/lb on Tuesday morning, or 1.5% down, its lowest since November 2022, following steep losses of nearly 15% since intraday highs of April, after a string of disappointing economic readings from China, the world’s largest copper consumer, pointing to a weak outlook for copper demand.

Copper, Daily chart

Adding to China’s industrial weakness, commodities investors have been worrying about slowing economic growth in USA and Eurozone (mainly France & Germany), the world’s second and third economies, following the weak readings for flash manufacturing PMI, construction, and home sales.

The manufacturing conditions have been deteriorating around the world, hitting multi-month lows according to official data, dragged down by the slump in Chinese manufacturing that has begun in the second quarter of the year as China’s post-pandemic economic recovery eased, battering copper.

Overall, the copper demand outlook is deteriorating as global growth slows in the face of rising interest rates which boost borrowing costs, and resilient Core inflation, despite the recent weakness in crude oil and natural gas prices.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

Copper slumped the most in seven months as weaker-than-expected macroeconomic data in China, Europe, and the USA, fears of a global recession, U.S. default risk, and the rebounding dollar have temped the demand outlook for the metal used in manufacturing and construction.

The price of red metal fell as low as $3,61/lb on Tuesday morning, or 1.5% down, its lowest since November 2022, following steep losses of nearly 15% since intraday highs of April, after a string of disappointing economic readings from China, the world’s largest copper consumer, pointing to a weak outlook for copper demand.

Copper, Daily chart

Adding to China’s industrial weakness, commodities investors have been worrying about slowing economic growth in USA and Eurozone (mainly France & Germany), the world’s second and third economies, following the weak readings for flash manufacturing PMI, construction, and home sales.

The manufacturing conditions have been deteriorating around the world, hitting multi-month lows according to official data, dragged down by the slump in Chinese manufacturing that has begun in the second quarter of the year as China’s post-pandemic economic recovery eased, battering copper.

Overall, the copper demand outlook is deteriorating as global growth slows in the face of rising interest rates which boost borrowing costs, and resilient Core inflation, despite the recent weakness in crude oil and natural gas prices.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.

Copper slumped the most in seven months as weaker-than-expected macroeconomic data in China, Europe, and the USA, fears of a global recession, U.S. default risk, and the rebounding dollar have temped the demand outlook for the metal used in manufacturing and construction.

The price of red metal fell as low as $3,61/lb on Tuesday morning, or 1.5% down, its lowest since November 2022, following steep losses of nearly 15% since intraday highs of April, after a string of disappointing economic readings from China, the world’s largest copper consumer, pointing to a weak outlook for copper demand.

Copper, Daily chart

Adding to China’s industrial weakness, commodities investors have been worrying about slowing economic growth in USA and Eurozone (mainly France & Germany), the world’s second and third economies, following the weak readings for flash manufacturing PMI, construction, and home sales.

The manufacturing conditions have been deteriorating around the world, hitting multi-month lows according to official data, dragged down by the slump in Chinese manufacturing that has begun in the second quarter of the year as China’s post-pandemic economic recovery eased, battering copper.

Overall, the copper demand outlook is deteriorating as global growth slows in the face of rising interest rates which boost borrowing costs, and resilient Core inflation, despite the recent weakness in crude oil and natural gas prices.

U.S. dollars strengthen in the last session after some hawkish comments from Fed officials have also weighed on the dollar-denominated copper prices, making it more expensive for buyers with foreign currency.

 

U.S. Debt default risk adds pressure on Copper:

The uncertainty surrounding U.S. debt ceiling negotiations also has been weighing on the growth-sensitive red metal. U.S. President Joe Biden and House officials have been discussing how to raise the U.S. government’s $31.4 trillion debt ceiling until the deadline of June 07.

In case of no agreement, we are going to have the first-ever U.S. government default that would roil the financial markets and likely lead to a global recession, which would be a negative catalyst for the demand for copper and other industrial metals.