A key macro report of the day - US CPI report for May - was released at 1:30 pm BST. Market expected headline price growth to stay unchanged at 8.3% YoY. However, there were some rumors that reading may actually be higher than that amid impact of rising fuel prices, among others. Indeed, it was so. Headline price growth accelerated to 8.6% YoY. On month-over-month basis, headline price growth increased 1.0% MoM (exp. 0.7% MoM). On the other hand, core gauge decelerated but less than market expected. The reading is likely to reinforce need for future rate hikes and may shelf discussions over rate hike pause in September
US CPI report for May:
Start investing today or test a free demoOpen real account TRY DEMO Download mobile app Download mobile app
Headline: 8.6% YoY vs 8.3% YoY expected (8.3% YoY previously)
Core: 6.0% YoY vs 5.9% YoY expected (6.2% YoY previously)
Canadian jobs report was released simultaneously and showed an employment gain of 39.8k (exp. 29.5k), led by growth in full-time jobs. Unemployment rate dropped to 5.1% (exp. 5.2%). A major beat in US inflation figures outweigh solid Canadian report leading to a jump in USDCAD. The pair is making another attempt at breaking above the 1.2740-1.2760 resistance zone, marked with 50% retracement.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.