MUFG’s Lee Hardman reports that the Pound (GBP) has weakened as UK political uncertainty intensifies after poor local election results for the government. EUR/GBP has risen and cable has fallen, with Gilts selling off modestly.
EUR/JPY falls by some 0.18% on Tuesday as the Japanese Yen (JPY) strengthens after US Treasury Secretary Scott Bessent said excess volatility in the FX markets is undesirable. At the time of writing, the cross-pair trades at 184.93 after peaking at around 185.46.
USD/JPY trades around 157.65 on Tuesday at the time of writing, up 0.30% on the day.
United States 52-Week Bill Auction increased to 3.65% from previous 3.56%
Gold (XAU/USD) extends its slide on Tuesday, retracing the previous day’s gains as hotter-than-expected US inflation data boosts US Treasury yields and the US Dollar (USD).
The AUD/USD pair fell toward the 0.7220 region on Tuesday after hotter-than-expected United States (US) inflation data boosted the US Dollar (USD) and reinforced expectations that the Federal Reserve (Fed) may keep interest rates elevated for longer.
Dow Jones Industrial Average (DJIA) futures spent the overnight session in a tight range between 49,600 and 49,700, with little appetite to pick a side ahead of the April Consumer Price Index (CPI).
Kevin Warsh squeaked through the Senate 51-45 on Tuesday to claim a seat on the Federal Reserve (Fed) Board of Governors, with the separate vote to confirm him as Fed Chair scheduled for Wednesday and Jerome Powell's term as chair wrapping up on Friday.
United States 10-Year Note Auction rose from previous 4.282% to 4.468%
NZD/USD trades around 0.5940 on Tuesday at the time of writing, down 0.41% on the day, pressured by stronger-than-expected inflation data from the United States (US).
TD Securities’ FX team, led by Jayati Bharadwaj and colleagues, keeps a neutral short-term stance on the US Dollar (USD) following the April United States (US) Consumer Price Index (CPI) release.
United States Consumer Price Index n.s.a (MoM) rose from previous 330.21 to 333.02 in April
