The Euro (EUR) has bounced up to levels above 1.1700 against the Dollar (USD) but remains nearly 0.6% below Tuesday's high at 1.1787, as the US Dollar is supported by hot inflation figures on Wednesday.
Gold (XAU/USD) consolidates minor losses on Wednesday as the US Dollar (USD) extends its recovery amid persistent uncertainty over US-Iran talks and growing expectations that the Federal Reserve (Fed) could keep interest rates higher for longer.
The GBP/USD pair is down 0.25% to near 1.3500 during the European trading session on Wednesday. The Cable faces selling pressure as the US Dollar (USD) trades firmly due to growing expectations that the Federal Reserve (Fed) will deliver at least one interest rate hike this year.
According to a Reuters poll, the European Central Bank (ECB) will hike the deposit rate by 25 basis points (bps) to 2.25% in June, said 59 of 70 economists (vs 44 of 85 in April survey).
European Central Bank (ECB) policymaker Madis Muller said on Wednesday that a fast resolution in the Strait of hormuz is needed for the ECB to hold rates unchanged in June.
Danske Research Team highlights that United States (US) Consumer Price Index (CPI) data showed strong core and services inflation, reinforcing concerns about persistent underlying price pressures. Shelter and super-core components rose, while core goods remained flat.
The Australian Dollar (AUD) trades higher against its major currency peers, flattening against the US Dollar (USD) around 0.7240, during the European trading session on Wednesday.
Dow Jones futures move little around 49,850 during the European hours on Wednesday, ahead of the United States (US) regular opening. Meanwhile, the S&P 500 advance 0.24% to near 7,440, and the Nasdaq 100 futures rise 0.71% toward 29,400.
The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is extending its gains for the second successive day, trading around 98.40 during the European hours on Wednesday.
OCBC’s Christopher Wong notes the US Dollar (USD) strengthened after hotter United States (US) Consumer Price Index (CPI) data lifted UST yields and revived Fed hike expectations, with focus now on US Producer Price Index (PPI).
The Federal Court of Australia has ruled that Fortescue must compensate the Yindjibarndi Ngurra Aboriginal Corporation (YNAC) for cultural loss with an amount of A$150m ($108.4m). The post Fortescue to compensate Yindjibarndi with $108.4m for cultural loss appeared first on Mining Technology.
