- German May prelim CPI +7.9% y./y vs +7.6% expected
- Fed's Waller: Says he support tightening by 50 bps for 'several' meetings
- Fed's Waller warns about eroding credibilty on inflation
- ECB resigned to falling euro - report
- Germany's Scholz: Everybody is working constructively to reach an EU embargo on Russia oil
- Canada Q1 current account surplus +$5.03B vs $3.20B expected
- June seasonals: Trends to watch as the calendar turns
- China vice premier: I promise to stabilize the economy and supply chain
Markets:
- Gold up $3 to $1856
- German 10-year yields up 10 bps to 1.056%
- WTI crude up $2.10 to $117.17
- Toronto TSX Comp +0.8%
- S&P 500 futures up 21 points, or 0.5%
- AUD leads, JPY lags
It was a US holiday so I take everything with a grain of salt but the positive mood from last week carried over. The commodity currencies led the way as China announced plans to reopen Shanghai and Beijing, leading to expressions of relief but also skepticism.
The European bond market moves were the most-worrisome of the day with yields jumping as German CPI rose faster than expected. There's a growing possibility that Lagarde will need to hike more than anyone in Europe would like. That's so far helping the euro and it climbed another 50 pips today.
The loonie continues to benefit from the impressive strength in oil. If Chinese demand storms back and Russian oil is further curbed, there isn't much to slowdown further gains, aside from demand destruction.
Bitcoin rejoined the risk rally today (finally). It put in a strong day, up more than 6% with ETH climbing nearly 10%. BTC is still within the recent range but the potential for an upside break is something to watch in the hours ahead.
Coming up on the economic calendar is Japanese retail sales and industrial output.
