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US markets shrug off hot CPI data
Despite lingering U.S. inflation concerns, the market sentiment remained largely unaffected
Japanese yen rose 0.3% on indications of upcoming wage hikes, heightening prospects for a Bank of Japan interest rate hike.
UK's GDP grew to 0.2%, but GBP/USD pair steadied near 1.2776, failing to rise higher.
Expectations of OPEC+ output cuts and recent drone attacks on Russian refineries contributed to the resilience of oil markets, with Brent at 81.93 and WTI near 77.56.
On the Market Watch:
In currencies, hotter CPI boosted the dollar overnight. Despite lingering U.S. inflation concerns, market sentiment remained largely unaffected, with expectations intact that the Federal Reserve might still start rate cuts in June.
Markets now are squarely focused on PPI and retail sales data for the week.
The Japanese yen experienced a 0.3% increase, fueled by indications of upcoming wage hikes in Japan, heightening anticipations for a prospective interest rate hike by the Bank of Japan.
Meanwhile the UK’s GDP grew to 0.2% from negative 0.1% previous but the GBP/USD pair failed to rise higher near and steadied near 1.2776.
In commodities, oil prices were little changed after being under pressure overnight following the U.S. Energy Information Administration's upward revision of the domestic oil output forecast.
However, declines were constrained due to expectations that the OPEC+ output cuts would continue to impede global oil growth. Additionally, the recent series of drone attacks on Russia, targeting refineries, contributed to the market's resilience.
Brent was last seen near 81.93 while WTI hovered near 77.56.
