How Will Eurozone PMIs Impact ECB Expectations?

At their latest gathering, ECB officials decided to keep interest rates unchanged as expected but they sent clearer signals that they may start lowering them soon. At the press conference, President Lagarde said that the decline in inflation is comforting and that a few members felt sufficiently confident to cut rates.

RBNZ Review: Doing the Hard Yards

Today's RBNZ update leaves us comfortable for now with our forecast of a first policy easing in February next year, followed by only gradual policy easing thereafter. Future inflation data will be key in driving our OCR view with the risk that easing comes later than currently expected.

Nvidia's Stock Price Has Doubled Since the Beginning of this Year

Today is probably the most important and certainly the most-awaited day of the earnings season as Nvidia is due to reveal its Q1 earnings after the bell. Option markets were pricing in a post-earnings move of more than 8% up or down for Nvidia at last week’s close, a move that could shake the S&P500 0.4% up or down according to Citigroup.

Sterling Soars Once Again in the Wake of Consensus-Beating CPI

Sterling is soaring once again in the wake of consensus-beating CPI numbers that are nothing but a setback to the BoE eying a June cut amid hopes for a quick return to 2%. Headline (2.3% from 3.2%), core (3.9% from 4.2%) or services (5.9%, barely down from 6%) all topped estimates and push EUR/GBP to the lowest level since mid-March (0.8516).

Bitcoin Waits for Ethereum Story to Develop

Bitcoin is losing 1.9% in 24 hours to just below $70K, having come under pressure after it rallied above $71.3K, as short-term speculators rush to take profits around the all-time highs reached in March. The local highs are just below the peaks in April and March, and now all eyes are on the market’s next move. A break of resistance at $72K has the potential to trigger a real FOMO. A pullback below would force a $60K correction scenario to be considered as the main one.

New Zealand Dollar Climbs after Hawkish RBNZ Announcement

The New Zealand dollar has pushed higher on Wednesday. NZD/USD is up 0.54%, trading at 0.6124 in the European session at the time of writing. The New Zealand dollar rose as high as 0.6152 (0.80%) in the Asian session after the RBNZ meeting but has pared much of these gains.

Bank of England

Inflation in April surprised significantly to the topside across the board, relative to both the consensus expectation and the BoE's forecast from the May monetary policy report. Headline came in at 2.3% y/y (cons: 2.1%, BoE: 2.1%, prior: 3.2%,), core at 3.9% (cons: 3.6%, prior: 4.2%) and services a 5.9% y/y (cons: 5.4%, BoE: 5.5%, prior: 6.0%).

GBP/USD Shrugs as UK Inflation Higher Than Expected

The British pound edged higher earlier today but has pared most of those gains. GBP/USD is trading at 1.2703, up 0.06% early in the North American session.

UK Inflation Distanced the Expected Rate Cut

Inflation in the UK exceeded forecasts, making traders and investors cautious about the prospects for policy easing in the coming months.

Sunset Market Commentary

April UK inflation figures set the tone from the start of trading. The Bank of England, with a leading role for chair Bailey, hyped the number way in advance as coming a long way in the direction of the 2% inflation target. That was because of the anticipated drop in the cap on regulated energy prices which would put the UK on a European instead of US-style inflation trajectory