Here’s a quick market update on what’s happening after inflation figures boomed.

The Fed

After inflation figures leaped to a 13 year high, investors are left to bet on a quicker end to stimulus. However, that didn’t change much as Wall Street opened higher especially after Powell calmed markets with another inflation is only temporary speech. 

Investors’ focus now shifts to more Fed clues on the next steps for asset tapering, stimulus activity, and the timeline for hiking interest rates. 

The Kiwi

The New Zealand dollar took off by 0.92% to 70.07. After the Reserve Bank of New Zealand said on Wednesday that it would end its large-scale asset-purchase program from next week. 

A dollar dip

The dollar fell after Powell’s comments on the economy and inflation and that “ its still a ways off” from the central bank goals. 

The USD slipped to 92.41 slightly below its peak of 92.83 reached last week. Investors will definitely now keep central banks as a major market theme. As they start pushing back on their stimulus programs.

OPEC+ Agreement

On the positive side, Saudi Arabia and the UAE finally resolved their 2-week long standoff deal on baseline production. The UAE has agreed to a production level of 3.65 million barrels per day. Compared to its current baseline which was around 3.17 million barrels per day.

And now markets will await the next OPEC+ resolution meeting!