Power day-ahead prices doubled from public holiday-curbed long weekend
After dropping near 100€/MWh over the weekend due the power demand being significantly curbed by the Easter weekend and particularly sunny conditions, the European power…
US inflation grew by 5.3% y/y in June according to the BLS on Tuesday. If we remove the volatile effect of gas prices and food inflation, core inflation was recorded at 4.3% y/y in June. In a testimony to the U.S. House of Representatives financial services committee, Jerome Powell remained confident that the “transitory” nature of this recent inflation spike would not spread to all consumer items. He mentioned that inflationary goods were identified and specific to the economy’s re-opening. He confirmed that removing monetary support measures was premature. Bond yields in the US declined to 1.33% early Thursday, after an initial yield appreciation to reach 1.4%.
The Eurodollar was back to 1.184, as the inflation differential between the two regions widened, in favour of Europe. Indeed, German and French inflation rates were respectively recorded at 2.5% and 1.5% in June. However, European growth was still lacklustre, as industrial production declined by 1% in May, due to low demand and supply chain constraints.