Diverging inflation points at further USD appreciation [Video]
Federal Reserve (Fed) President Jerome Powell said that the Fed may delay its first rate cut due to the lack of progress in cooling inflation following a rapid decline observed by the end of last year. The US yields rose and the dollar gained a further bullish support as the major peers in Europe insisted on the diverging inflation dynamics that would allow them to lower their interest rates regardless of how long the Fed remains on hold.
Elsewhere, the barrel of US crude remains offered on geopolitical news, or the lack thereof, after Iran attacked Israel this weekend but risks remain tilted to the upside, while gold attracts buyers near record despite rising US yields as investors are looking for a safe harbour in the midst of rising geopolitical tensions, hawkish shift from the Fed and uncertainty regarding the upcoming earnings season.
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