EUR/USD stayed flat. US CPI posted its biggest gain in three years.

EUR/USD was trading higher throughout the day, however it sharply declined during North American session. As of 6:00 PM EDT the pair was trading at 1.1312, unchanged from the previous close.

US shares dropped today driven by the concerns of more interest rate hikes from Fed this year. Below is presented the performance of major indices:

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  • DJIA closed at 17,529.98, down 1.02%.
  • Nasdaq Composite lost 1.25% finishing at 4,715.73.
  • S&P 500 closed at 2,047.21, which is 0.94% lower than the previous close.

US consumer prices posted their biggest gain in more than three years last month mainly driven by the increase in gasoline prices and rents. According to the Labor Department its Consumer Price Index rose 0.4% in April.

The Commerce Department announced today that the housing starts grew 6.6% to a seasonally adjusted 1.17 million units in April, and building permits increased 3.6% reaching a 1.12 million-unit rate.

Industrial production increased 0.7%, higher than the analysts’ estimates of 0.3% rise.

“The combination of higher prices, housing gains and industrial production support the narrative of a second-quarter rebound in GDP, and will stir talks of the necessity of at least one Fed hike later this year” said Jay Morelock from FTN Financial in New York.

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“The equity market is taking cues from stronger data and some of the comments from Fed members in terms of maybe hiking more than is priced into the market,” said Patrick Maldari from Aberdeen Asset Management in New York.

Oil price closed higher today. The WTI Crude finished at 48.31 USD/bbl, up 1.24%. The Brent Crude was trading at 49.35 USD/bbl as of 5:46 PM EDT, which represents a 0.78% increase from the previous close.

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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