CPI data makes bulls ecstatic Powell's dove faction fell short of expectations The US dollar stabilized and rebounded after a sharp decline

13 Jun, 2024

On Wednesday (June 12th), due to lower than expected US May CPI data, the US dollar index plummeted significantly.

On Wednesday (June 12th), due to lower than expected US May CPI data, the US dollar index plummeted significantly. However, it rebounded slightly after the Federal Reserve's latest interest rate forecast released a hawkish signal, ultimately closing down 0.56% at 104.67. The 10-year US Treasury yield ultimately closed at 4.3230%. The yield on the 2-year US Treasury, which is most sensitive to the Federal Reserve's policy interest rates, ultimately closed at 4.7600%.

 

On Wednesday (June 12th), gold prices were hindered from rising. In the morning, due to May CPI data showing a slowdown in US inflation growth, gold prices surged nearly $30 to $2341.51 per ounce. However, the Federal Reserve's interest rate decision remained unchanged, implying that interest rates would only be lowered once this year. Federal Reserve Chairman Powell's speech was not as dovish as expected, and gold prices gave up most of their gains, closing at $2324.71 per ounce, an increase of about 0.35%.

 

International oil prices rose on Wednesday (June 12) due to ongoing tensions in the Middle East region, which provided support. WTI crude oil closed up 0.16% at $78.24 per barrel; Brent crude oil rose 0.43% to $82.48 per barrel.

 

 

 

 

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