Inflation data in the United States did not print enough soft numbers to reverse market sellouts. Inflation in the United States was 8.3% in April, above analysts’ expectations of 8.1%, but fortunately less than 8.5% was printed a month ago. However, core inflation, excluding the most volatile food and energy prices, surged 0.6% in April from 0.3% in the previous month.
There is still hope that 8.5% of printing peaked in March, but the overheating of consumer prices does not seem to be easily cooled. The Producer price index Is due today, and gate prices for US factories are expected to cool from 11.2% in March to 10.7% in April.
Disappointed US inflation data sent another shock wave to the US stock A market that sends all major US indexes that fall on Wednesday. The S & P 500 fell by more than 1.5%, while interest rate-sensitive Nasdaq fell by more than 3%, falling below the 12K level for the first time since November 2020.
Apple and Nvidia returned another 5% yesterday as Amazon fell more than 3% to its lowest price in two years.
The US dollar remains bright and Dollar index A lower-than-expected cooldown in US inflation revived the Fed’s hawks, surpassing the 104 mark.
Pound Dollar is testing 1.22 this morning as UK-Europe relations are suffering from Northern Ireland headaches. According to the latest news, the EU has begun infringement proceedings against Britain and is rushing to suspend its trade agreement if the UK government submits a bill to revoke its trade commitment with Northern Ireland. lb The bear is looking at the 1.20 mark, which could be a real sell-out drop.
In commodities, gold Despite higher-than-expected US inflation yesterday, it rebounded from 200-DMA as US 10-year yields eased. Yellow metal is likely to continue to be under pressure from rising US yields, with negative trends likely to fall below the current level of around $ 1840, the 200-DMA level.
US crude, on the other hand, is expected to recover a healthy global economy, but there is interest in decent dip buying below $ 100 a barrel. But there is one good news. Covid’s case in Shanghai halved this week, raising hopes that the blockade could soon end in China’s economic center. Still, achieving the Zero-COVID policy is difficult, and unless the Chinese government relaxes the rules, the risk of a new blockade is ubiquitous.
Crypto meltdown
Cryptocurrencies are swayed by the overall risk sold out and the collapse of the peg against the Terra USD dollar this week.
Terra’s case has caused an industry-based panic, as Terra is the third largest stable coin in the world and failed to keep its promise to maintain a stable value in the US dollar. Terra-USD pegs are based on the belief that you can exchange Luna at any time to guarantee Terra a $ 1 peg. But apparently that belief is no longer working, and trust is the most important factor in cryptocurrency success. So you bet, the level of stress on other cryptocurrencies is increasing. Terra’s sister coin, Rene, lost 94% as Bitcoin fell below $ 30,000 yesterday. It wasn’t just Terra’s fault. Unfortunately, US inflation data also helped sell Bitcoin.
With the latest cryptocurrency upheaval, US Treasury Secretary Janet Yellen is pushing for regulation. But what the crypto industry now needs is not government regulation, but confidence and enthusiasm for how digital tokens fit into an increasingly digital life.
