With US yields heading higher (US10Y; 3.11%) on Thursday, and some solid Fed data too, (Philadelphia Fed Mfg Survey +34.4 vs expected 21.1), the dollar has remained underpinned, with US$Jpy looking particularly strong. Stock markets are slightly lower, under pressure from the firm yields while the metals are unchanged. WTI settled pretty much unchanged on Thursday, after briefly making a new trend high of 72.33. but remained on track for a weekly gain amid expectations U.S. sanctions on Iran would cut global crude supplies, extending the rally in oil prices.
In other data on Thursday, the US initial jobless claims rose 11k to 222k in the week ended May 12, slightly above expectation of 215k while the 4 week moving average dropped 2.75k to 213.25k, the lowest since December 1969.
Friday will be rather thin for data. Japan will kick things off with the CPI for April after which the only excitement in Europe will come via the German Wholesale Price Index/PPI for April and the EU Current Account for March. The US will have a couple of Fed speakers; Kaplan/Brainard but that is it so it may be a quiet session unless political events intervene. Have a good weekend.
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