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On May 9th, Futures News reported that from a macroeconomic perspective, Trumps primary objectives are to secure low-priced Middle Eastern oil, curb Irans nuclear program, and expand the dollars dominance in oil settlements, rather than perpetuating an energy price crisis. The likelihood of a macroeconomic upside is relatively high, but further analysis is needed. If the escalation of the US-Iran situation leads to a continued surge in oil prices and stagflation, the market will price gold as an inflation hedge and safe haven, thus boosting silver. However, weakness in the industrial sector will drag down silver, limiting its upside potential or causing a pullback. Conversely, if the Middle East situation does not lead to stagflation, and the Federal Reserve begins raising interest rates to mitigate inflation risks, silver will be under pressure. If US-Iran relations ease and the Strait of Hormuz resumes normal navigation, oil prices may fall significantly, and the market may price in a Fed rate cut this year, leading to an upward correction in silver prices. Overall, looking ahead to the second quarter, given the possibility of a breakthrough in the Middle East situation, the logic of a Fed rate hike this year may be disproven. Coupled with the supply and demand situation of regional market differentiation but persistent overall deficits, silver prices are likely to continue their moderate rise.On May 9th, NIO posted on social media to refute rumors that it had been summoned for questioning, stating that they were pure fabrication.On May 9th, JiKrs legal department posted on social media that they have recently noticed a group of social media accounts maliciously spreading information such as "eight new energy vehicle companies were summoned for talks," and using AI software to fabricate false information that JiKr had been "summoned for talks," which has greatly damaged JiKrs brand reputation. JiKr has not received any such "summoning" information. Regarding these malicious attacks and defamation, we have collected and secured evidence and will protect our rights in accordance with the law.May 9th - According to the latest data released by Cui Dongshu, Secretary-General of the China Passenger Car Association, my countrys automobile exports reached 3.28 million units from January to April this year, a year-on-year increase of 52%, setting a new record in recent years. The total export value reached US$56.9 billion, a year-on-year increase of 54%, also a new record in recent years.On May 9th, World Health Organization (WHO) spokesperson Christian Lindmeier stated on May 8th that the WHO had initiated a response to the current Hantavirus outbreak in accordance with the International Health Regulations. In addition to the cruise ship affected by the outbreak, contact tracing is ongoing. Regarding public concern about the transmissibility of the Hantavirus, Lindmeier emphasized that the virus is not highly contagious and does not easily spread from person to person. Many people who have had close contact with infected individuals during this outbreak have tested negative for the virus, which sufficiently demonstrates that the risk of Hantavirus to the general population is very low.

USD/CHF Consolidates Around 0.9040 As Attention Shifts To US Inflation

Daniel Rogers

Apr 10, 2023 14:27

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The USD/CHF pair continues to trade lacklusterly above the crucial support level of 0.9036 in the early Tokyo session. Investors are shifting their focus to Wednesday's release of United States Consumer Price Index (CPI) data, making it difficult for the Swiss Franc to gain traction.

 

As tensions between China and Taiwan escalate, S&P500 futures have pared some of their gains. The market's anxiety has been alleviated by the increasing intensity of Chinese military exercises around Taiwan Island. In addition, concerns of a recession are likely to cause volatility in US equities.

 

Jamie Dimon, CEO of JPMorgan Chase, stated in an interview with CNN that the recent banking turmoil caused by the dissolution of Silicon Valley Bank (SVB) and Signature Bank has increased the likelihood of a recession in the United States.  Despite the robustness and security of the banking system, the recent turmoil in the financial system is "another weight on the scale" toward recession, he added.

 

The US Dollar Index (DXY) is protecting the 102.00 support level ahead of US Consumer Price Index (CPI) data. According to the consensus, headline inflation will fall from 6.0% to 5.2%. In addition, the headline monthly CPI would decelerate to 0.3% from 0.4% previously reported. As a consequence of oil prices remaining low in March, inflationary pressures are anticipated to become evident.

 

In contrast, the core CPI, which excludes crude and food prices, is anticipated to increase to 5.6% from 5.5%. The tenacity of inflationary pressures is maintained by the resiliency of demand for essential products, as a result of a higher labor cost index. A similar event could compel the Federal Reserve (Fed) to raise rates again at its May monetary policy meeting.

 

Regarding the Swiss Franc, Swiss markets are suspended on Easter Monday. This week, the Producer Price Index (PPI) data will have an impact on the Swiss Franc.