The UK and Eurozone released the latest CPI figures on Wednesday. The UK inflation rate increased by 1.5% in April, the highest since March 2020 and above market expectations of 1.4%. While Eurozone inflation grew by 1.6% year-on-year increase, up from 1.3% year-on-year in March. On the other hand, last week, data showed U.S. consumer prices jumped to an annual rate of 4.2% in April, the strongest inflation rate since 2008.
Moving ahead to the North American session, CANADA will release the April month consumer inflation figures at 12.30 GMT.
Wall Street ended lower on Tuesday as investors remain concerned about the higher inflation. Today the traders and investors waiting for the minutes from the US Federal Reserve’s April policy meeting to know the FED policymakers view about the inflation pressures.
Crude Oil prices extend lower following the release of API inventory data. The data showed that the oil inventories in the US increased by 0.62 million barrels in the week ended May 14th of 2021, following a 2.53 million drop in the previous week.
In the currency market, the US dollar Index struggling to move above the psychological level 90 ahead of FED minutes. Meanwhile, the British pound fell to a fresh session low of 1.4164 following the release of UK inflation data.
The Safe haven metal trading slightly lower on Wednesday after the US dollar gained bullish momentum.
On the data front, the US Census Bureau and the US Department of Housing and urban development released the April Building permits and Housing starts data. The data showed the US building permits increased by 0.3% to 1760k in April, slightly below the expectation of 1770k. While housing starts dropped -9.5% to 1569k, well below the expectation of 1710k.
Moving ahead today, the important events to watch:
CANADA – CPI: GMT – 12.30
US – EIA crude inventories: GMT – 14.30
US – FOMC meeting minutes: GMT – 18.00
Worldwide, more than 163 million people have been confirmed infected and more than 3.39 million have died. The United States has confirmed over 32.9 million cases and has had more than 587,000 deaths from COVID-19, the highest totals in the world.
EUR/USD: The currency pair retreat back to near 1.2200 area. Any break below 1.2200 will open the doors to 1.2180 and 1.2120. On the upper side, the immediate resistance at 1.2250.
The important levels to watch for today: Support-1.2180 and 1.2120 Resistance- 1.2250 and 1.2280.
GOLD: The precious metal retreated back to below $1860 after the metal failed to break above $1875. Overall, the momentum remains bearish throughout the European session.
The important levels to watch for today: Support- 1843 and 1830 Resistance- 1875 and 1882.
Quote of the day: “Games are won by players who focus on the playing field – not by those whose eyes are glued to the scoreboard.” - Warren Buffett.
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