Market Snapshot Pre-FOMC: EUR/USD, S&P 500, USD/JPY

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US CPI posted encouraging figures, acting as a release valve for the dollar and lingering concerns of accelerating price pressures. This is how major assets shape up pre-FOMC

2024-06-12 15:40:42IG Client Sentiment Update: Our data shows the vast majority of traders in EUR/GBP are long at 81.63%, while traders in EUR/JPY ar...On the face of it, it was a good report, seeing headline measures of core and headline inflation come in below expectations on a yearly and monthly basis. Fed officials look to services inflation and super core inflation as key gauges of inflation momentum.

The euro has recovered against the dollar despite weakness presenting itself at the start of the week when markets got wind of French President Macron’s snap election announcement. Japan’s economy has revealed hardships, complicating a faster rate hiking cycle than what we are experiencing. Some doubts remain about the sustainability of inflation beyond 2% over the medium-term and officials have communicated their desire for wage pressures to continue outside of annual negotiations/reviews.

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