U.S. Urges China to Help Curb Iran’s Actions in Gulf, Rubio Says 
DOJ Ends Probe Into Fed Chair Jerome Powell, Boosting Kevin Warsh Confirmation Prospects 
Eurozone Recession Risks Rise as Middle East Conflict Threatens Growth, ECB Official Warns 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
OECD Sees Bank of Japan Raising Interest Rates to 2% by 2027 
Asian Currencies Hold Steady as Strong U.S. Inflation Data Boosts Dollar 
Trump, Xi Begin High-Stakes China Summit Focused on Trade, Taiwan and Global Tensions 
US Stock Futures Slip as Iran Tensions and Hot Inflation Data Pressure Wall Street 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
South Korea Central Bank Signals Inflation Concerns as Oil Prices Surge 
RBA Raises Interest Rates to 4.35% Amid Rising Inflation Risks and Middle East Tensions 
The Reserve Bank of India (RBI) is expected to change its direction to a hawkish stance at its monetary policy meeting in June (small probability of a pre-emptive hike) and pave the way for a 25 basis points increase in August, according to the latest report from DBS Group Research.
April CPI inflation rose 4.6 percent y/y, vs March’s 4.3 percent print. Non-food components accounted for the entire increase, just as food pressures stabilized. Core/core-core inflation outpaced headline inflation to a three-and-half-year high.
Adverse base effects and seasonal factors are likely to drive headline inflation past 5 percent by June-July 2018, before pulling back into the 4-5 percent range.
"With another move likely in the fourth quarter of this year, we see room for cumulative 50bp hikes in FY19. Slow progress on the banks’ bad asset resolution and a gradual turnaround in growth suggest that an aggressive hiking cycle is unlikely", the report added.
Meanwhile, the central bank is unlikely to be comfortable with the firm core inflation amidst the higher volatility in the bond and exchange rate markets.
Lastly, FxWirePro has launched Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
