We cannot say the same as yesterday as it pertains to volatility: markets were very volatile – yesterday’s data sent markets seesawing all around.
U.S. inflation data came in notably softer than expected, with rising just 0.1% m/m versus the 0.3% forecast, bringing the y/y rate down to 2.8%. also undershot expectations at 0.1% m/m (vs 0.2% expected).
The combination of resilient labor data and cooling inflation has boosted market sentiment, reducing fears of stagflation and reinforcing the case for a soft landing, although markets sold the news.
The breached the 22,000 mark not once but twice in the day and still finished lower on sell-the-news flows. Only the finishes the day unchanged – let’s keep an eye on these flows as selling such positive news gives a bad outlook ahead.
The Canadian did break new all-time highs, though, as Canada gets ready to invest more into its Military for the times ahead.
Crypto markets were initially all green but got dragged from a retracement in , which closed down close to 1%, undoing the rally from yesterday’s session.
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prices have chopped around and finished the day close to unchanged, still hanging around the 3,300 Pivot Point.
and related commodities really performed yesterday with Trump announcing that talks with Iran are stalling, and lower-than-expected supply were announced. WTI just broke the $68 mark.
A Picture of Yesterday’s Performance for Major Currencies
Source: OANDA Labs
The shot down at the release of the CPI Data but came back particularly against the and the which had performed weakly throughout the overnight session.
The Greenback is still lower on the day overall, with the rallying on lower yields. You can take a look at our latest mid-week North American markets review to see what moved the NA markets.
The stands on top of the currency board for the session, followed by other European currencies, the and the .
A Look at the Economic Calendar for Tomorrow’s Session
Source: MarketPulse Economic Calendar
Tomorrow’s calendar will be filled with an army of European Central Bank speakers, but most importantly, the US Producer Price Index data at 8:30 E.T.
The is forecasted at 0.2% m/m ( 2.6% y/y), while the more closely watched is expected to come in higher at +0.3% m/m and +3.1% y/y.
Markets will be watching to see if the recent weakness in U.S. consumer goods data is also showing up in producer prices. Any downside surprise could reinforce a disinflation narrative—stepping out further from stagflation fears.
Also on the radar, though not widely flagged, is tomorrow’s bond auction. This will offer insights into whether investors still have an appetite for long-term safe-haven assets, especially after yesterday’s moves in U.S. equities.
Apart from that, don’t forget the weekly report, expected at 240K – The data was over expectations twice in a row, something to keep in check.