Market maintains its optimistic nuance and the US dollar is stay underpressured. It is although the inflation number is strong. The focus is now moved to the American consumers trust.
Besides that, the progress potential in a bipartisan talk is also highlighted. The delayed lockdown opening in British is weighted on Sterling again. Meanwhile, the oil commodity extend its increase.
The S&P 500 index reaches the highest record again. That is why; the investors deny their concern about the main inflation jump to become 5%. It is the highest one since 2008.
The Market Trust about the Temporary Label
It seems that the market is quite sure that the Federal Reserve will see through the price increase. Furthermore, that organization may continue to labelling that the inflation pressure is just temporary.
The United States obligation yield result in 10 years slipped significantly under 1.50%. That brought the dollar was decreased together with them. A bipartisan group of U.S. senators has reached an agreement.
The value is $1.2 trillion which will be used for the infrastructure purchase where the tax increase is excluded. Joe Biden is now having his your to visit some countries in the Europe.
However, he doesn’t give his agreement due to that deal yet. The more detail report may be announced on Friday. The EUR/USD is moving around 1.22 although the European Central Bank doesn’t announce their decision.
A Statement from the ECB President
The European Central Bank President, Christine Lagarde, said that it is too early to talk about an action to quit from the QE program. The situation about Brexit is also affecting the other pairs.
One of them is the GBP/USD which moves under 1.42 amidst the Brexit condition and a report that the Prime Minister Boris Johnson will delay the opening again for four weeks later.
The last stage to become normal again is scheduled in 21 of June. However, the quick spread of the new Deltabvariant has been pushing the policy makers change their plans.
UK monthly Gross Domestic Product statistics for April showed a strong growth rate of more than 2%. Elsewhere, the Bank of England Governor Andrew Bailey spoke later about that topic.
The Oil Price is Increasing
The WTI crude oil is sold above $70 although there is a report that the Saudi Arabia will increase their production. Meanwhile, gold is moving around $1.900 because of the lower US yield.
The price of oil increased on Thursday after it was slipped when a data showed that the fuel demand in the driving season in America is weak. The BRENT commodity was also up by 18 cent.
It means that 0.25% higher in the level of $72.40 per barrel. It stays on the highest level which has been not seen since May 2019. Mean while, the United States WTI oil futures increased by 11 cent.
It means that the commodity was up by 0.16 percent to become $70.07 per barre and getting close to its highest level since the October 2018. That shows a good progress so far.
The Market Recovers Impressively
The market recovers significantly and it is quite impressive. That can be seen from the EIA report announced yesterday. The declining weekly gasoline demand is so disappointing.
An analyst stayed that it will be interesting to see whether the OPEC monthly report which is going to be released soon may confirm about the optimistic demand last week or not. It is especially for the second quarter period.
If the answer is a yes, as what so many people are expected, that situation may lift the oil price. The United States inflation data and jobless claim will give more direction about the largets economy health in the world.
