The Fed and RBNZ highlight inflation risks which saw the dollar and Treasury yields strengthen, weighing on stocks. In the coming week PCE will be the main focus alongside the 2nd estimate of US GDP, Aus and EU CPI.(AI Video Summary)In this week’s Analyst Chat, the focus was on recent central bank activities and market reactions. Global central banks, including the Reserve Bank of New Zealand and the Fed, conveyed a hawkish stance, emphasizing that high interest rates might persist due to elevated inflation pressures. Despite a recent dip in U.S. CPI, the disinflation process is slow, impacting market confidence and prompting a slight rise in the U.S. dollar and yields. The UK also reported unexpectedly high services inflation, affecting market expectations about interest rate cuts. Looking ahead, all eyes are on the ECB’s anticipated rate cut in June, with market reactions heavily influenced by central banks’ hawkish messages and ongoing high inflation concerns.
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