Market Sentiment Shifts After U.S. Inflation and Fed Decisions

By Tomasz Wisniewski|

Published: June 13 2024, 04:44 GMT+0

Market Sentiment Shifts After U.S. Inflation and Fed Decisions

Traders, let’s dive into Thursday’s action. Yesterday brought clarity with crucial U.S. inflation data and the FOMC’s decisions. Inflation data showed a slight dip, which initially weakened the dollar. However, the Fed’s hawkish tone during the press conference, despite leaving rates unchanged, suggested readiness to act if necessary, boosting the dollar later on.

Despite this, the dollar ended Wednesday as the weakest currency, with the Australian and New Zealand dollars leading. Today, the trend has shifted, with the dollar strengthening, while the Japanese yen and New Zealand dollar are lagging.

In the commodities market, precious metals have slumped to midterm lows, while oil continues its bullish correction. Indices enjoyed significant gains yesterday, with many reaching new long-term highs, likely buoyed by the positive decisions made. This positive sentiment is expected to carry on into today’s trading.

Today’s macroeconomic highlights include strong job data from Australia and upcoming U.S. PPI and unemployment claims. Additionally, a notable shift in the stock market saw Apple reclaim its position as the largest company globally, pushing NVIDIA to third place.