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The dollar hovers close to a one-week high
Minutes from the Fed's meeting showed confidence in gradually easing price pressures and discussed possible tightening.
The British pound rose for the 10th day to 1.2731, driven by higher-than-expected UK inflation data and BoE rate cut expectations, unaffected by British elections.
Despite Wall Street gains, Asian stocks fell, with China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes down 0.9%.
Hong Kong’s Hang Seng index dropped 1.8%, continuing its retreat from a nine-month high earlier in May.
The dollar
The dollar remained close to a one-week high, following its largest daily percentage gain this month against a basket of peers. After Fed officials showed willingness to raise interest rates overnight dialing back cuts once again. The dollar index was last seen near 104.77.
According to minutes released on Wednesday, officials expressed confidence that price pressures would ease, albeit slowly. However, the meeting summary also indicated discussions about potential tightening.
The pound
The British pound continued to rise for the 10th consecutive day due to higher-than-expected inflation data on Wednesday. The pound now stands near 1.2731, boosted by economic data from the UK in addition to rate cut expectations by the BoE, shrugging off the British elections.
Asian markets
Asian stocks slid this morning despite Wall Street gains overnight over Mega cap giant earnings that surpassed expectations.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes each slid about 0.9% on Thursday, continuing their retreat from the highest levels reached in 2024. Whilst Hong Kong’s Hang Seng index saw steeper losses, sinking 1.8% after surging to a nine-month high earlier in May.
