Dollar Trades Strong; Oil Rally Drives Global Stocks

Dollar Trades Strong; Oil Rally Drives Global Stocks

Slowdown in U.K. inflation arrested the pace of Sterling against U.S. Dollar (CURRENCY:USD). The pound trimmed its early day gains but maintained higher than the greenback. GBP/USD (GBPUSD) traded 0.56% up at 1.4482 during European hours.

U.K. inflation dips, steals show for Pound

The Office for National Statistics posted 0.3% annualized increase in consumer price index in April, lower than 0.5% in March. Dollar continued to rally against Yen and Euro ahead of U.S. inflation data to be released today. USD/JPY (USDJPY) surged 0.50% to 109.56 while EUR/USD (EURUSD) climbed 0.06% to 1.1327.

Stocks rise, oil volatile

Most Asian indices marched higher today, driven by firmer oil prices. Hang Seng (INDEXHANGSENG:HSI) and Nikkei 225 (INDEXNIKKEI:NI225) added the most, up by 1.18% and 1.13% to 20,118.80 and 16,652.80 respectively.

European stocks extended their gains for the third day in a row, helped by gains in telecommunications and commodity producers. A continued rally will place European shares into their longest advancing session in two weeks. Michael Woischneck of Germany-based Lampe Asset Management said that markets are riding high mainly due to oil prices and central banks, with the diminished possibility of the Federal Reserve to hike rates. FTSE 100 (INDEXFTSE:UKX) soared 0.65% to 6,191.67 during early hours.

iPath S&P GSCI Crude Oil Total Return (NYSEARCA:OIL) rallied near $50 per barrel mark but trimmed most of its gains in European session. Brent Crude dipped 0.55% to $48.70, and West Texas Intermediate Crude was seen trading slightly higher by 0.04% at $47.74. However, continued supply disruptions, mainly from Nigeria, is likely to contain decline in the commodity. Oil markets received their biggest boost yesterday after Goldman Sachs, a long-term commodity bear, changed its outlook to bullish, thereby, putting all concerns of building supply glut to rest.