U.S. Dollar tight ahead of 2PM FOMC presser

No changes to interest rates are expected, but all attention will be on Warsh’s tone about inflationary pressures, his vision for the meetings for the second half of the year, and if he wants to tilt towards a more stimulus-driven approach. Meanwhile, the positive effects continue with markets rejoiced that a peace deal to end conflict in the Middle East will finally come to fruition despite criticism and doubts about the possible details behind the terms.

Oil prices continued easing with Brent Crude price per barrel experiencing its longest losing streak in over ten months. Stocks have rejoiced as investors sense relief in the horizon for business outlooks while SpaceX remains on headlines for its escalated valuation. We shall see if the U.S. Dollar benefits form what is expected to be a “hawkish” take by Warsh as fighting inflation becomes imperative.

EUR

The Euro is slightly down this morning but has slowly yet surely gained a bit of ground back after continuing a poor run since start of the month. Indeed, the shared currency has climbed by over half of a percent in the past 12 days. It seems the increase in borrowing costs has boosted the currency a bit. Earlier in their trading session, the Euro-zone saw the release of May Consumer Price Index figures which came in as expected with the annual average remaining at 3.2%. It seems the European Central Bank is on point.

GBP

Pound Sterling is also down a bit after inflationary figures showed a slower pace than anticipated. CPI across the pond came in at half the expectation for May, advancing by only 0.2% vs. 0.4% forecast. The annual average thus slipped a bit from 3.0% to 2.8%. Retail Prices were also not as high, while the Producer Price Index met estimates at half a percent for the month, while the yearly average is at 4.0%. We shall see how the Bank of England’s meeting addresses the ease to price growth tomorrow.