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 demo
Open 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.
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.