Slower than expected US inflation data and strong demand for a 30-year US Treasury auction put downward pressure on yields and thus the USD. The dollar lost around 0.7%, it’s weakest performance since March.
The closely watched Consumer Price Index came at 2.1% year-over-year in April, lower than the 2.2% expected by the market, on the back of cheaper cars, airfares and home utilities. The debate will now turn into the FED and the number of interest rates hikes they will need for this year; this data point certainly helps to reduce the pressure, as inflation seems to be, at least in the short term, more controlled than what the market was anticipating.
US initial jobless claims came slightly lower than expected at 211k vs 219ke. Last night news were all supportive of risk and US stocks pushed to the highest level in almost 2 months.
On the Geopolitical front, Trump said he will meet North Korean leader Kim Jong Un on June 12 in Singapore.