Forex Today – Asian Session: US inflation takes center stage

What you need to know on Wednesday, May 12:

Tensions escalated as attention shifted to US inflation data Rising commodity prices sent the Chinese producer price index sharply higher in April, raising concerns about rising commodity prices. inflationary pressures in the US The US Federal Reserve has maintained a very flexible monetary policy and clarified that higher inflation levels would probably be temporary and would not alter its policy. However, investors are concerned that the Fed may have to act earlier than desired. US inflation is expected to have risen 3.6% YoY in April

Stocks tumbled, and most global indices ended the day in the red, while government bond yields rose. The 10-year US Treasury yield ended the day at 1.62%.

Meanwhile, the US Department of Labor showed that local employers posted a record number of available jobs in March. Vacancies increased 8.12 million in the month. Investors had second thoughts about the “terrible” nonfarm payroll report, attributing the low numbers to companies not being able to find the workers they need, rather than blaming a lack of jobs.

The US dollar remained under selling pressure, ending the day with uneven losses against its main rivals. EUR / USD is trading around 1.2150, while GBP / USD added to recent gains and settled at 1.4150. The USD / JPY pair retested the 108.30 area by bouncing modestly before the close.

Gold fell intraday, but trimmed most of its losses before the Wall Street close, hovering around $ 1,837 at the end of the day. Crude prices started the day falling, but closed with gains, with the WTI at around $ 65.30 a barrel.

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