Daily Alert [text] – Wednesday 15th May 2024: US CPI offers hope of rate cuts

Mark NugentDaily Alert, May 2024

Daily Alert [text] – Wednesday 15th May 2024: US CPI offers hope of rate cuts

This Daily Alert is text only.

We’ve just had the highlight of the week, US CPI.

There are a number of measures of CPI. All of them came in at or below expectations, and those expectation were below the prior readings. So that’s good. In particular, headline CPI for April was the one measure that came in below the expectation.

US Retail Sales also missed to the downside, showing the slowing effect the Fed has had on the US economy.

This is probably a relief for the Fed and enhances the chances of cuts taking place this year.

As you might imagine, the USD and 10-year yield fell, and US equities rose.

The weakening USD has pulled USDJPY down significantly which will doubtless make the Bank of Japan hesitate to intervene in support of the JPY.

I’ll be back tomorrow with a brief video of Trade 14, USDJPY long, that made +3.16%

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