A much softer than expected US CPI print overnight saw stocks soar higher and bond yields drop as it seems likely the Federal Reserve will pull back on future rate hikes. Wall Street managed another positive session while European markets have nearly closed the gap on their recent mini-correction.
Currencies were betting that US inflation had undershot and it was all one way against USD overnight as Euro hit a new high above the 1.11 handle while the Australian dollar broke through the 67 cent level and almost hit the 68 handle.
US bond markets saw a big drop across the entire yield curve with the 10 year pulling back 12 pips to 3.85%, while oil prices put in another new high on the weak USD with Brent crude lifting more than 2% to finish above the $80USD per barrel level. Gold continued its bounceback to finally breakthrough the $1950USD per ounce level.
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