Forex
The dollar went sharply negative; futures went sharply positive after U.S. inflation data
The U.S. dollar reversed into negative territory and Wall Street stock index futures went higher Wednesday after U.S. consumer price data for April came in line with analysts’ expectations.
The U.S. consumer price index for April was 0.4 percent month-over-month, meeting expectations and unchanged from March.
The dollar index to a basket of major currencies fell 0.28% to 101.33, while a few minutes before the release of statistics grew by about 0.17%.
The euro rose by 0.26% to $1.10. The Japanese yen paired with the U.S. dollar jumped 0.43% to 134.63 yen per $1. The spot price of gold rose 0.56% to $2,045.47 per troy ounce; reversing the dynamic completely – the precious metal was losing 0.44% before CPI.
The yield on 10-year U.S. Treasuries was 3.4521%, down from 3.5167% before the release. German 10-year government bond yields (DE10YT=RR) immediately fell to 2.288% from 2.329%.
Italy’s 10-year government bond yield fell to 4.203%. U.S. stock index futures reversed to higher after the data release: Dow futures rose 0.41%, S&P 500 futures rose 0.69%, and Nasdaq 100 futures jumped 0.85%, portending a strong opening for Wall Street on Wednesday.
Earlier, we reported that the dollar fell against the euro before the release of data on inflation in the U.S.
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