fbpx

PU Prime App

Exclusive deals on mobile

Halten Sie die globalen Märkte in Ihren Händen

Unsere mobile Trading-App ist mit den meisten smarten Geräten kompatibel. Laden Sie die App jetzt herunter und beginnen Sie, mit PU Prime auf jedem Gerät, jederzeit und überall zu traden.

  • Market Insights  >  Weekly Outlook

11 May 2023,04:24

Weekly Outlook

US CPI Shows Signs Of Moderation But Caution Still Advised

11 May 2023, 04:24

Share on:
FacebookLinkedInTwitterShare
Share on:
FacebookLinkedInTwitterShare

Markets have posted a slight rally after inflation came in lower than analyst expectations even as a debt crisis looms.

On Wednesday, the U.S. Bureau of Labor Statistics released the year-on-year CPI readings for April, where a rise of 4.9% came in marginally lower than economists’ expectations of 5.0%. Meanwhile, month-on-month core CPI came in at 0.4%, in line with expectations. The takeaway from all this? It looks like some indication that the Fed’s aggressive hiking regime seems to be working. 4.9% is the lowest rate in two years, giving the markets further hope that the Fed might be pausing or even reversing its interest rate increases soon. 

Risk appetites have been boosted at the news, with U.S. equities rising. The S&P 500 rose 0.8% while the Nasdaq leapt 1.1%. Yields dipped, while the dollar moved lower.

Meanwhile, oil has consolidated just below 73 as a weaker dollar and strong demand in Asia propped up the commodity weighed down by a much higher than expected build in US oil inventories, where there was 2.951 million barrel increase, against expectations of a draw of 0.914m. 

Post-Market

Even with evidence of moderating influence, markets are still understandably cautious with core inflation still remaining at 5.5% and that a CPI of 4.9% – while lower than expectations – is a far way off from the Fed’s 2% target. 

Last week’s April NFP reading, meanwhile, indicated an increase of 253K and above expectations, a sign that the labour market remains stubbornly strong even though March’s figure dipped slightly below forecasts.

Then there’s the fact that even with a pause in rate hikes, the Fed Fund rates still remain at a high of 5.00% to 5.25%.

Part of the caution also stems from the looming debt crisis in the US, where analysts say that the US could hit its default as early as 1 June up until early August. Pure economics has taken a backseat to politics as talks about whether to raise the debt ceiling are still going on with no end in sight. An unprecedented default will be disastrous for the US economy. 

In addition to keeping a lookout for Friday’s US Initial Jobless Claims and PPI data, both released at 15:30 on 11 May, investors are also advised to keep a close watch on the development of the debt situation in the US. 

As a  friendly reminder, do keep an eye on market changes, control your positions, and manage your risk well. 

Starten Sie mit einem Vorteil in das Trading

Traden Sie Forex, Indizes, Metalle und mehr zu branchenweit niedrigen Spreads und mit blitzschneller Ausführung.

  • Beginnen Sie mit Einzahlungen ab nur $ 50 auf unsere Standardkonten mit dem Trading.
  • Erhalten Sie Zugang zum 24/7-Support.
  • Sie haben Zugang zu Hunderten von Instrumenten, kostenlosen Schulungsmaterialien und einigen der besten Promotionen, die es gibt.
Jetzt registrieren

Latest Posts

Schnelle und einfache Kontoeröffnung

Live-Konto erstellen
  • 1

    Registrieren Sie sich

    Registrieren Sie sich für ein PU Prime Live-Konto mit unserem unkomplizierten Verfahren

  • 2

    Zahlen Sie Geld ein

    Zahlen Sie bequem über verschiedene Kanäle und in verschiedenen Währungen auf Ihr Konto ein

  • 3

    Beginnen Sie mit dem Trading

    Erhalten Sie Zugang zu Hunderten von Instrumenten zu marktführenden Tradingbedingungen

Please note the Website is intended for individuals residing in jurisdictions where accessing the Website is permitted by law.

Please note that PU Prime and its affiliated entities are neither established nor operating in your home jurisdiction.

By clicking the "Acknowledge" button, you confirm that you are entering this website solely based on your initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website which is provided on reverse solicitation in accordance with the laws of your home jurisdiction.

Thank You for Your Acknowledgement!

Ten en cuenta que el sitio web está destinado a personas que residen en jurisdicciones donde el acceso al sitio web está permitido por la ley.

Ten en cuenta que PU Prime y sus entidades afiliadas no están establecidas ni operan en tu jurisdicción de origen.

Al hacer clic en el botón "Aceptar", confirmas que estás ingresando a este sitio web por tu propia iniciativa y no como resultado de ningún esfuerzo de marketing específico. Deseas obtener información de este sitio web que se proporciona mediante solicitud inversa de acuerdo con las leyes de tu jurisdicción de origen.

Thank You for Your Acknowledgement!