High inflation, hawkish central banks and that unconvincing stocks rally… | MarketTalk: What’s up today? | Swissquote

Show notes

The euro rebounded against the US dollar on the back of a broadly softer US dollar, and on the rising odds that the European Central Bank (ECB) will continue its rate hikes.
Inflation in the UK didn’t ease below the 10% as expected. Higher-than-expected UK inflation, combined with the sticky wages growth printed yesterday, helped fueling the expectation that the Bank of England (BoE) may not be done with its interest rate hikes just yet, and may opt for another 25bp hike and take the bank rate to 4.5% on May 11.
Cable jumped as a kneejerk reaction to the data on the back of revived BoE rate expectations.
In the US, Federal Reserve (Fed) members sounded hawkish, but the US dollar index is not necessarily doing better than its major peers on the back of more hawkish policy expectations, as rate hike expectations for other major central banks evolve parallel to the Fed’s.
Equities consolidate gains in a very unconvincing rally, Netflix missed subscriber growth expectations and Tesla results will tell by how much the EV price war that the company started ate into its profits after the bell.
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