The pound continues to suffer from fundamental challenges like the cost-of-living squeeze, despite a strong labor market, ahead of tricky BoE decision
The Australian Dollar fell against the US Dollar as climbing oil prices stoked inflation fears. China’s trade balance for May is set to cross the wires.
May U.S. CPI rose 1% on a seasonally adjusted basis and 8.6% over the last 12 months, a sign that the Fed has a long way to go to tame inflation and bring it back to the 2% target.
UK and European indices have taken a beating as rising inflation, yields and interest rates further complicate a low growth environment
USD recovers, Euro breaking lower. CPI presents key risk to markets
After markets hyped up the ECB meet yesterday, EUR/USD reacted negatively to the muted stance from the central bank and could be exacerbated by U.S. CPI later today.
Gold prices appear to be vulnerable as Fed rate hike expectations firm and the US Dollar recovers ahead of May’s US CPI inflation data. It will set the stage for next week’s FOMC meeting.
Stocks have shown extremely high levels of volatility so far this year but with an FOMC rate decision just a week away, both the S&P 500 and Nasdaq 100 have built into box formations.
The Nasdaq 100 and tech stocks tumbled as the ECB, another major central bank, turned more hawkish. Australia’s ASX 200 is looking vulnerable, eyeing Chinese lockdowns and CPI data.
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