Easing government bond yields weighed on the US dollar, which anyway ended the day with mixed performance across the major currencies. The yield on the US 10-year Treasury note stands at around 1.93%, down from its weekly peak at 1.97%.
The GBP\/USD pair is unchanged on a daily basis trading at around 1.3525, while the EUR\/USD pivots around 1.1430. Commodity-linked currencies were the best performers, as AUD\/USD trades in the 0.7180 price zone, while USD\/CAD fell to 1.2670.
BoC\u2019s Governor Tiff Macklem spoke in the Canadian Chamber of Commerce and highlighted the role of supply-chain issues on higher inflation. He said he was confident issues may soon recede, although the current truckers\u2019 conflict may add to disruptions.
Gold peaked at $1,835.81 a troy ounce, ending the day nearby. Crude oil prices ended the day little changed, with WTI trading at $89.40 a barrel.
The White House warned about soaring inflation, one day ahead of the release of the January Consumer Price Index.
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Economic Data Other Developments <\/p>\n\n\n\n Wall Street jumped on Wednesday, closing sharply higher as megacap growth stocks powered up thanks to a pause in rising interest rates, and upbeat earnings reports also encouraged investors to buy.<\/p>\n\n\n\n The benchmark 10-year US Treasury yield slipped from multi-year highs hit in the previous session, helping steady sentiment across global markets and boosting demand for growth stocks.<\/p>\n\n\n\n Meta Platforms surged, ending four sessions of deep declines that saw it lose almost a third of its value. The biggest boosts to the S&P 500 came from Nvidia and Microsoft.<\/p>\n\n\n\n Real estate was among the strongest of 11 S&P 500 sector indexes. The bond market basically is saying there\u2019s a cap or a limit to how much the Fed is likely to raise rates, and that is very positive for stocks in general, and especially for growth stocks tend to be valued higher.<\/p>\n\n\n\n <\/p>\n\n\n\n Also Read:<\/p>\n\n\n\n Wti Steadies At Five-Week Support Line<\/a><\/p>\n\n\n\n Does Bitcoin\u2019s Surge Signal Greater Risk Appetite?<\/a><\/p>\n\n\n\n Could Russia-Ukraine Crisis Push Oil Prices?<\/a><\/p>\n\n\n\n Gold prices Close Higher As USD, T-yields Retreat<\/a><\/p>\n\n\n\n Wall Street Soars On Back of Big Tech<\/a><\/p>\n\n\n\n Optimism Impacts The Us Dollar<\/a><\/p>\n\n\n\n What\u2019s After White House\u2019s Alert On CPI?<\/a><\/p>\n\n\n\n GBP\/USD Performs Passively Within Familiar Ranges<\/a><\/p>\n\n\n\n Fed\u2019s Mester Supports Rate Increase In March<\/a><\/p>\n\n\n\n EIA Crude Oil Stocks Fall By 4.756M Barrels<\/a><\/p>\n\n\n\n BoC\u2019s Macklem: Global supply chain problems may have peaked<\/a><\/p>\n\n\n\n ECB\u2019s Schnable: Rate hikes wouldn\u2019t lower energy prices<\/a><\/p>\n\n\n\n
<\/strong>Their have been no significant economic data all through the American session
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<\/strong>Investors are preparing for Thursday\u2019s Consumer Price Index report, which should give an update on the inflation picture. The Federal Reserve has already broadcasted a monetary policy pivot in order to address the historically high price increases.
The CPI report has had a big bullseye on it all week and the truth is that headline number will likely be one of the highest. Now the good news is we are likely close to a major peak in inflation and this number very well could be the peak.
Some improvements in supply chains have been lately felt across markets and this is the first clue that economies are nearing a peak in inflation as well. The inflation data is estimated to show that prices rose 0.4% in January, for a 7.2% gain from one year ago, according to Dow Jones.<\/p>\n\n\n\n