The US CPI came and went. The prices remain elevated and well off the 2% target for the Fed. Moreover the MoM were not exactly indicative of a run to disinflation on the surface at least. Shelter did once again throw some shade on the downtrend but there is hopes that the impact from that will be trending to the downside later this year, but it and services as well, are still not coming down.
If US CPI is high, UK CPI is to the moon. The YoY UK CPI was released today and remains above 10.0% at 10.1% but is coming down with hopes that it eases the pressure on the BOE going forward. The GBP is the 2nd weakest of the major currency pairs today (behind the AUD). The GBPUSD is trading at new session lows and is back below the 100 and 200 hour MAs at 1.2118 and 1.20925. The low from Monday is being approached near 1.2030 (the low reached 1.2035.
Today we get retail sales in the US with the expectations for a rebound after the -1.1% decline last month. The retail sales are expected to rebound 1.8%. The ex auto is expected to see a 0.8% gain (vs -1.1% last month) and the control group also expected to grow 0.8% (vs -0.7% last month).
A look around the markets are showing:
- Spot gold is trading down -$18.03 or -0.97% at $1836.34
- Spot silver is down $0.28 or -1.29% at $21.55.
- WTI crude oil is trading at $78.22 down $0.84 on the day
- Bitcoin is trading at $22,750, which is higher in the day. Near the close yesterday at 5 PM the price was at $22,198
in the premarket for your stocks, the major indices are lower after mixed results yesterday:
- Dow Industrial Average -108 points after yesterday's fall of 156.66 points
- S&P index -18 points after yesterday's -1.16 point decline
- NASDAQ index -55 points after yesterday's 68.36 point rise
in the European equity markets, major indices are higher:
