The easing of US long rates (down 8 points to 4.585%) weighed on the dollar, which accelerated its decline at the end of the day, with the $-Index down -0.3%, below 106.00, and sinking towards 105.95.
It was the Euro that showed the most strength, gaining from +0.2% (from 10 a.m. to around 5 p.m.) to +0.55% at 1.0675 (the Canadian dollar gained +0.4%, the second-best performance of the day).

The final figure for inflation in the eurozone in April was published this morning.
According to Eurostat, inflation stood at 2.4% in March, compared with 2.6% in February, thus confirming its flash estimate for last month, while inflation in the European Union fell from 2.8% to 2.6% month-on-month.

In the UK, inflation eased to an annualized 3.2% in April, from 3.4% in March, paving the way for a future rate cut by the Bank of England.
the Pound nevertheless advanced by +0.2% to 1.2450, a spread equivalent to that observed on the Yen/$ (154.40) or the Swiss Franc 0.9105.

The greenback's decline did not benefit Gold, which retreated to $2,370 from $2.385 this morning, when IS rates were stuck on their annual highs: Jerome Powell's latest comments yesterday seem to rule out the prospect of a rate cut in June.

This suggests that only 2 easings would be on the agenda in 2024.... as opposed to the 6 to 7 anticipated just 3? months ago.
Rates are therefore likely to remain above 5.25% for another 6 months, a zenith synonymous with ever-increasing debt servicing costs.

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