Forex
Global Markets Rebound on US Inflation Data, Middle East Uncertainty Lingers
Global markets experienced a relief this week as moderate US inflation data and robust corporate earnings boosted risk appetite, but lingering geopolitical uncertainties in the Middle East continued to temper enthusiasm.
The US Producer Price Index remained flat month-on-month while rising 4.7% annually in July, falling short of projections. Energy prices sustained their downward trajectory.
The cooling inflation picture pushed Federal Reserve rate hike expectations further out to December, allowing the US Dollar Index to slip below the 100 threshold as Wall Street closed at record highs.