- Weekly Jobless Claims drop to 14-month low
- US PPI recorded highest increase since 2010
- Tesla (TSLA.US) will no longer accept Bitcoin for vehicle purchases
- Oil plunges 4%
European indices finished today's session in mixed moods weighed down by miners which suffered from lower commodity prices. Meanwhile US stocks rebounded from yesterday's sell-off as investors digested inflation and interest rate concerns. The Dow Jones rose 1%, while the S&P 500 jumped 1.3%. The tech-heavy Nasdaq Composite popped 1% as Apple and Microsoft both rebounded more than 2%. Alphabet and Facebook rose more than 1% each. Meanwhile Bitcoin price fell sharply after Tesla's CEO Elon Musk informed that his company is no longer accepting the most popular cryptocurrency as payment for purchases of its electric vehicles owing to the excessive amount of carbon-based energy it uses. On the data front, weekly jobless claims reached a new pre-pandemic low of 473K while analysts expected a figure of 490K. Producer prices went up 0.6%, more than expectations of 0.3%. Year-on-year, producer prices rose 6.2%, the largest advance since 12-month data were first calculated in November 2010. Meantime, Fed’s Clarida said that the twin shocks of a disappointing payroll report and higher inflation in April had not changed the central bank's view on maintaining its current ultra-accommodative policy.
WTI crude fell more than 4 % and is trading slightly below $63.50 a barrel, while Brent is trading nearly 3.6% lower around $66.75 a barrel as a key pipeline for U.S. fuel reopened from a cyberattack-related closure. Meanwhile, The Biden administration issued the 101-year-old Jones Act to temporarily allow foreign tankers to transport gasoline and diesel to fuel-starved areas of the country. Elsewhere gold rose 0.4% to $ 1,822.00 / oz, while silver is trading 0.3 % lower, slightly below $ 27.00 / oz amid stronger dollar and higher Treasury yields.
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USDCAD rose sharply following BoC governor comments however buyers failed to break above major resistance at 1.2200 and the pair pulled back to the 200 SMA (red line). The nearest support lies at 1.2145. However, if buyers will manage to uphold recent momentum, then another upward impulse towards 1.2250 could be launched. xStation5
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