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Tightening continues amid higher inflation

Another mixed session on Wednesday, with Europe edging lower once more and US posting small gains early in the day. There is so much focus on the inflation outlook right now and what policymakers are doing to get to grips with it. Two central banks have raised interest rates by 50 basis points today and the Fed is expected to follow that with a similar move in a couple of weeks' time. The moves from the RBNZ and BoC were not surprising, although the consensus for the former was 25 basis points p

13-04-2022 12:35 GMT by Craig Erlam

Bank of Canada raises rates by 0.50%

Canadian dollar yawns after rate hike The Bank of Canada was expected to come out flying, and it certainly didn't disappoint as it increased interest rates by 50-basis points. This was the second hike in two months after the central bank had kept rates at an ultra-low 0.25% for close to two years.

13-04-2022 10:40 GMT by Kenneth Fisher

Market Insights Podcast (Episode 319)

OANDA Senior Market Analyst Craig Erlam reviews the latest market news with Jonny Hart. They discuss the latest inflation data from the UK and US, the RBNZ rate hike, upcoming BoC rate decision and the moves in oil.

13-04-2022 06:01 GMT by Craig Erlam

RBNZ super-hikes but NZD slides

RBNZ hikes rates by 0.50% The RBNZ came out swinging on Wednesday, as it hiked the Cash Rate to 1.50%, with an oversized hike of 50-basis points. Ordinarily, a sharp rate hike by a central bank would prop up the local currency, but that was not the case today.

13-04-2022 05:10 GMT by Kenneth Fisher

Inflation relief for GBP/USD

OANDA Senior Market Analyst Craig Erlam talks about how the latest US inflation report offered relief for GBPUSD around key technical support.

13-04-2022 04:50 GMT by Craig Erlam

Oil rallies, gold edges higher

Oil prices rally overnight Oil prices rallied sharply overnight as OPEC rebuffed increasing production above already agreed amounts, and Russian oil production fell below 10 mio barrels per day. Putin’s Ukraine negotiation dead-end comments also dampened hopes that a negotiated settlement could relieve tight energy markets. Brent crude rallied 5.55% higher to USD 104.85, and WTI leapt 6.10% higher to USD 101.00 a barrel.

13-04-2022 04:48 GMT by Jeffrey Halley

US dollar rally accelerates overnight

US dollar extends gains In contrast with the exuberance of equity markets, the US dollar rally accelerated overnight, with dollar index gains led by weakness in the euro and sterling. The dollar index ignored the softer monthly core-inflation print, rallying an impressive 0.34% to 100.33, where it remains in Asia.

13-04-2022 04:36 GMT by Jeffrey Halley

Ex-China equities rally sharply in Asia

Asian markets rise after Brainard remarks Equity markets ex-China, in Asia, are having a positive session, helped by US index futures booking strong gains today after Lael Brainard torpedoed the “peak inflation” rally on Wall Street overnight. Overnight, The S&P 500 finished 0.34% lower, the Nasdaq lost 0.30%, and the Dow Jones fell by 0.26%.

13-04-2022 04:15 GMT by Jeffrey Halley

Peak inflation nations

Has US inflation peaked? Equity markets ex-China are rallying today as US equity futures jump in Asian trading. Overnight, US inflation hit multi-decade highs, with YOY inflation printing at 8.50%, while core inflation rose by 6.50% YOY.

13-04-2022 04:06 GMT by Jeffrey Halley

Oil back above USD 100, gold shines

USD 100 oil is back and it is probably going to stay. The crude correction ended now that the market has mostly priced in the strategic petroleum release plan, China is beginning to lift some of their lockdowns and as negotiations between Russia and Ukraine appear to have hit a dead-end.

12-04-2022 15:40 GMT by Edward Moya

Peak inflation is likely here, stocks rebound, bitcoin fights to hold USD 40k

US stocks rallied after a cooler-than-expected consumer price report signaled that the inflation peak could be in place. The rebound in equities did not last long as oil prices rebound back above the USD 100 level.

12-04-2022 15:35 GMT by Edward Moya

Oil surges on OPEC, gold jumps on inflation

Oil spikes as OPEC offers the EU little hope Oil prices are spiking after flirting with sub-USD 100 levels in recent days as China appeared to loosen lockdown restrictions and OPEC warned that it would be impossible to replace Russian crude while pushing back against calls for it to utilise its spare capacity. This also came as it reported a decline in supply and demand growth this year and another missed month of production targets; something that the market expects after months of the same. Wh

12-04-2022 12:49 GMT by Craig Erlam

Relief as US inflation offers hope

European stock markets are heading for the second day of losses at the start of the week while the US is enjoying a boost following the latest inflation data. I never thought I'd see markets responding positively to inflation rising 1.2% on the month and 8.5% on the year but these are not normal times. The headline numbers still don't make for easy reading, especially for households that are continuing to see real incomes fall as a result of higher prices, particularly for energy and food. But t

12-04-2022 12:45 GMT by Craig Erlam

Euro dips as German inflation soars

German data was in the spotlight on Wednesday, with the release of German inflation and ZEW Economic Sentiment. The numbers were worrying, but the euro's response was muted, as the currency trades in the mid-1.08 range. German, US inflation soars German CPI for March came in as expected, at 7.3% YoY.

12-04-2022 12:19 GMT by Kenneth Fisher

New Zealand dollar eyes RBNZ

The New Zealand dollar is finally in positive territory on Tuesday, after posting five consecutive losing sessions. RBNZ rate decision looms The RBNZ is widely expected to increase rates from the current 1.00% at the Wednesday meeting, but by how much? Pundits are calling the rate decision a "coin toss" between a 0.25% and a 0.50% increase.

12-04-2022 08:09 GMT by Kenneth Fisher

Will Dollar/Yen hit 130?

The Japanese yen hasn't managed a single winning session in the month of April, as the dollar has pummelled the yen over the past few weeks. Dollar/yen has climbed to 6-year highs and appears headed for even higher levels.

12-04-2022 06:29 GMT by Kenneth Fisher

China weighs on oil, gold edges up

China growth fears continue to weigh on oil Oil prices finished sharply lower overnight, despite OPEC telling Europe they wouldn’t be pumping any more oil. Recession fears around US monetary policy and mostly, fears surrounding China’s growth outlook and its Covid zero policy, pushed oil prices down in overnight trading. Brent crude fell 2.90% to USD 99.25 overnight, while WTI fell 2.65% to USD 95.20 a barrel.

12-04-2022 05:31 GMT by Jeffrey Halley

US yields lift the dollar

Higher US yields boost the dollar The rise in long-dated US yields overnight reversed intraday losses and lifted the greenback. The dollar index rose 0.14% to 99.98, where it remains in Asia.

12-04-2022 05:16 GMT by Jeffrey Halley

Asia equities remain under pressure

Higher yields weigh on equities Overnight, US markets took fright as US long-dated yields shot higher as inflation nerves grew on Wall Street. The S&P 500 fell 1.68%, the Nasdaq slumped by 2.18%, and the Dow Jones retreated by 1.17%.

12-04-2022 05:09 GMT by Jeffrey Halley

Equities yield to bonds

US yields hit 3-year high Markets got a case of inflation nerves overnight, with long-dated US yields shooting higher ahead of US inflation data this evening. The US 2-year 10-year curve now has nearly 30 points of positive daylight in it, thankfully removing the “inverse yield curve, we’re all doomed” headlines off the front page for now.

12-04-2022 04:51 GMT by Jeffrey Halley

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