Dollar weakening resumed on slowing wholesale inflation

US stock market ended marginally lower on Tuesday as China’s foreign ministry said it would respond firmly if the US insisted on escalating its standoff with China. The S&P 500 slid 0.03% to 2885.72. Dow Jones industrial edged down 0.05% to 26048.51. The Nasdaq slipped 0.01% to 7822.57. The dollar weakening resumed as data showed the increase in wholesale prices over the past year slowed to 1.8% from 2.2% in April. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, slipped 0.1% to 96.71 and is lower currently. Futures on US stock indices point to lower openings today.

ND100

 

DAX 30 outperforms European indexes

European stocks recovery accelerated on Tuesday led by basic resources shares. Both the EUR/USD andGBP/USD turned higher and are climbing currently. The Stoxx Europe 600 ended 0.7% higher. The German DAX 30 rose 0.9% to 12155.81. France’s CAC 40 gained 0.5%. UK’s FTSE 100 added 0.3% to 7398.45 as data showed wages in the three months to April beat forecasts while the jobless rate held at its lowest rate since 1975.

Hang Seng leads Asian indexes retreat

Asian stock indices are mostly lower today after President Trump’s comment he had “no interest” in a deal unless China agrees to terms it had previously agreed upon . Nikkei lost 0.4% to 21129.72 with yen resuming its climb against the dollar. Chinese stocks are falling despite report China's consumer inflation hit 15-month high in May: the Shanghai Composite Index is down 0.6% while Hong Kong’s Hang Seng index is 2% lower. Australia’s All Ordinaries Index pulled back 0.04% with Australian dollar accelerating its decline against the greenback.

Brent down on expected US inventories build

Brent futures prices are edging lower today. The American Petroleum Institute late Tuesday report indicated US crude inventories rose by 4.9 million barrels last week. Prices fell yesterday. Prices of August Brent ended down 1.5% at $61.35 a barrel on Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.

 


Want to get more free analytics? Open Demo Account now to get daily news and analytical materials.

This overview has an informative character and is not financial advice or a recommendation. IFCMarkets. Corp. under any circumstances is not liable for any action taken by someone else after reading this article.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD extends its gains toward 1.1300 after the dovish Fed decision

EUR/USD has extended its gains after the Fed opened the door to cutting interest rates, stating that uncertainties have increased. Markets are awaiting EU leaders to divvy up top jobs.

EUR/USD News

GBP/USD holds onto gains after retail sales, ahead of the BOE

GBP/USD has extended its gains above 1.2700 after the Fed opened the door to rate cuts. UK retail sales fell by 0.5% in May as expected. The BOE's decision and two more rounds of the Conservative contest await traders.

GBP/USD News

USD/JPY rebounds from multi-month lows, continues to trade below 108

Fed's dovish shift continues to weigh on the greenback. 10-year US Treasury bond yield plummets to lowest level since November 2016. Wall Street looks to open sharply higher on Thursday.

USD/JPY News

FOMC: Prelude to a rate cut?

The Federal Reserve added little new to its policy prescript in Wednesday’s FOMC statement and economic projections and with the anticipation for a July rate cut long priced into market levels the reaction was decidedly uninvolved.

Read more

Gold eases from multi-year tops, still well bid near $1380 level

Gold built on the post-FOMC upsurge and rallied to near six-year tops during the Asian session on Thursday, albeit retreated a bit thereafter.

Gold News

Majors

Cryptocurrencies

Signatures