【TOP 1 Morning】U.S. CPI hits record high, gold price rises, S&P continues to set high

Forex: U.S. dollar fell to lows

The U.S. dollar fell to a three-week low on Tuesday after data showed that inflation in the United States rose sharply in March, but it is not expected to change the Fed’s commitment to keep interest rates low in the next few years.

The U.S. Department of Labor announced on Tuesday that the U.S. CPI rose by 0.6% in March, the largest increase since August 2012. The increase in February was 0.4%. Excluding volatile food and energy, the core CPI rose 0.3% in March after a slight increase of 0.1% in February, the largest increase in seven months. After the data was released, the U.S. dollar soared for a while, then reversed its trend and fell to a three-week low.

The euro rose 0.28% against the dollar to $1.1945. The dollar fell 0.30% against the yen to 109.10 yen.

The pound against the U.S. dollar changed little in the day, at $1.3748, after the Bank of England announced that its chief economist will leave the central bank later this year. The Australian dollar, which reflects the global risk appetite, rose 0.29% to 0.7643 US dollars.

The New Zealand dollar rose 0.34% to $0.7051. The Bank of New Zealand is expected to keep interest rates and quantitative easing policy unchanged on Wednesday.

Gold: the price of gold rebounds

After the price of gold was under pressure from the dollar’s stabilization at the beginning of this week, the key U.S. inflation data rose, boosting the price of gold, which is currently above $1,745 and continues to recover. The price of gold fell by 0.01% to US$1,745.60.

Fed Chairman Powell and many economists believe that the rise in inflation is temporary, and the supply chain is expected to adapt and become more efficient. Supply constraints mainly reflect the shift in demand from services to goods during the pandemic, which has now entered its second year. Although the new three-week low of the US dollar index has made gold buyers satisfied, the lack of follow-up will test the upside of gold in the near term.

Crude oil: rising oil prices

Oil prices closed higher on Tuesday, boosted by China's strong import data, but the gains were limited due to concerns that the suspension of Johnson & Johnson vaccines may delay economic recovery and limit oil demand growth.

The settlement price of Brent crude oil futures rose 0.39 US dollars, or 0.6%, to US$63.67 per barrel, and US crude oil futures rose 0.48 US dollars, or 0.8%, to US$60.18 per barrel. The two major contracts have changed less than 1% for five consecutive trading days.

Phil Flynn, senior analyst at Price Futures Group, said, "We have been stuck in range trading, and we need clear demand data and the trend of US inventories to get out of the current low."

The Organization of the Petroleum Exporting Countries (OPEC) predicted in its monthly report on Tuesday that oil demand in 2021 will increase by 5.95 million barrels per day or 6.6%, an increase of 70,000 barrels per day from last month’s estimate. According to a Reuters survey, US crude oil inventories are expected to fall for the third consecutive week last week, while distillate and gasoline inventories may increase, which also supports oil prices.

US stocks: S&P continues to break record highs

As of the close, the Dow closed down 66.35 points, or 0.20%, to 33679.05 points, and it fell more than 150 points during the session; the S&P 500 closed up 12.14 points, or 0.29%, to 4141.17 points; the Nasdaq closed up 146.10 points. Increased 1.05% to 13,996.10 points.

On the disk, technology stocks and silver stocks were higher, while bank stocks were lower. In terms of individual stocks, Cloudflare (NET.N) closed up 11.42%, Novavax Pharmaceuticals (NVAX.O) closed up 10.94%, Palantir (PLTR.N) closed up 9.03%, and Roblox (RBLX.N) closed up 9.4%. %, Riot Blockchain (RIOT.O) closed up 14.94%, Canaan Technology (CAN.O) closed up 11.16%, and Dagong Culture (TKAT.O) closed down 9.16%.

Among the 11 sectors of the S&P 500 index, the utilities sector closed up 1.22%, the optional consumer sector also rose 1.04%, and the financial sector performed the worst, closing down 0.92%.

Today’s focus is on:

22:30 U.S. EIA Cushing crude oil inventory changes

22:30 Speech by Haskell, Bank of England