US CPIs Edge Higher
Yesterday's US CPI figures resulted in a surprise as they ticked up. Some say it has to do with the imposed tariffs by the US administration as companies are passing higher prices to consumers. While many CEOs have said on CNBC that they are increasing prices, the White House is firm about it and we heard Navarro state yesterday that there is NO inflation and that CEOs are NOT telling the truth...So who are we supposed to believe?
Meanwhile, Donald Trump has tweeted that the Dow Jones reached 27k for the first time ever (even though less than 1% of the lower 50% of the US population actually holds any relevant stocks from which they could experience the benefit of this uptrend) and blamed China for letting the US down and not buying agricultural products from the great US farmers which feel the impact heavily and happen to not be among the "rich" people who hold stocks.
EU Bourses Wobble
European stocks traded mixed on Friday morning following a negative close yesterday after a call from the International Monetary Fund (IMF) warned that the eurozone economy faces rising risks from trade tensions, Brexit and Italy. Auto stocks struggled on the back of a profit warning from German carmaker Daimler. In other news, shares of Thomas Cook Group (TCG) plummeted as much as 41% on news that the travel company is in talks over a £750m rescue package that would give its Chinese investor Fosun a majority stake in the company’s tour operator business.
Forex Preview: USD Slides
The USD is fading out once again coming back lower again ignoring the uptick in the CPI. Fed Chair Jerome Powell’s dovish statements this week hurt the dollar, with USD traders now focusing on the US/China trade talk developments for more direction on the greenback. Elsewhere, the EUR is on its 2nd consecutive daily attempt to push beyond the 1.1270 upwards and close above it. Watch for the US producer prices today on an otherwise rather uneventful calendar.
Gold Steadies, Oil Prices rise
Gold prices steadied this morning and are on track to post a weekly gain, on global growth jitters and prospects of an interest rate cut by the U.S. Federal Reserve. XAU/USD also reacted mildly to the CPI out of the US and is holding at elevated levels eyeing further possible increases. Oil prices rose today, hovering near six-week highs, as U.S. oil producers in the Gulf of Mexico cut more than half their output in the face of a tropical storm and on simmering Middle East tensions. Crude is holding at the $60,80 level and might be in for a break to the upside if the USD weakness prevails also since 53% of the US Gulf oil production was shut down due to a storm which should also impact oil stocks in the coming week and help oil prices further up.
Bitcoin Breaks 11.5K
Bitcoin was heavily criticized by Donald Trump via Twitter yesterday dropping back to 11k but already recovering this morning fighting to sustain itself above the so critical 11.5k level. The overall bullish outlook remains in place.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD retreats below 1.0700 after US GDP data
EUR/USD came under modest bearish pressure and retreated below 1.0700. Although the US data showed that the economy grew at a softer pace than expected in Q1, strong inflation-related details provided a boost to the USD.
GBP/USD declines below 1.2500 as USD rebounds
GBP/USD declined below 1.2500 and erased the majority of its daily gains with the immediate reaction to the US GDP report. The US economy expanded at a softer pace than expected in Q1 but the price deflator jumped to 3.4% from 1.8%.
Gold drops below $2,320 as US yields shoot higher
Gold lost its traction and turned negative on the day below $2,320 in the American session on Thursday. The benchmark 10-year US Treasury bond yield is up more than 1% on the day above 4.7% after US GDP report, weighing on XAU/USD.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.