The initial market reaction to the CPI release was a hawkish one
Oil prices decline to session lows: Sevens Report Co-Editor, Tyler Richey, Quoted in MarketWatch
Oil futures move up after CPI data, OPEC’s latest forecast for growth in oil demand
The initial market reaction to the CPI release was “a hawkish one, which saw oil prices decline to session lows,” said Tyler Richey, co-editor at Sevens Report Research. “Hawkish central bank policy is bad for the oil market because high interest rates over time act as a steady headwind on global growth and ultimately that weighs on consumer demand expectations.”
Looking at the reaction in the rates markets, “hawkish money flows were only modest, and investors are still pricing in a June rate cut from the Fed, just with a slight dip in confidence,” Richey said.
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