Headlines:
- All eyes on the US CPI data later today
- ECB's Lagarde: We still have more ground to cover in fight against inflation
- ECB's Nagel: We might be approaching the final stretch of rate hikes
- ECB's Stournaras: Barring any drastic changes, rate hikes will be over this year
- BOJ's Ueda: It will take some more time to sustainably meet price target
- China calls on banks to lower interest rate ceilings on deposits - report
- Germany April final CPI +7.2% vs +7.2% y/y prelim
- US MBA mortgage applications w.e. 5 May +6.3% vs -1.2% prior
Markets:
- CAD leads, CHF lags on the day
- European equities slightly lower; S&P 500 futures down 0.1%
- US 10-year yields down 1.5 bps to 3.507%
- Gold down 0.3% to $2,028.07
- WTI crude down 1.0% to $72.96
- Bitcoin up 0.1% to $27,670
It was a quiet session and very much expectedly so, as markets are waiting on the US CPI data later before firming up any narratives.
The dollar was steady throughout with major currencies seeing light changes and narrow ranges mostly. Meanwhile, equities are looking rather pensive with US futures little changed but just mildly lower awaiting the key risk event.
We got some ECB speakers but they mostly just reaffirmed what we already know i.e. there will be more rate hikes to come.
Besides that, it was very much a placeholder session as we wait for the inflation numbers to drive the market mood in the second half of the week. As things stand, traders are seemingly convinced that the Fed will move to the sidelines from next month. So, we'll see if the data later will either vindicate or invalidate that sentiment.
