WIKIFX REPORT: Markets remain fragile on recession chatters ahead of US PCE Inflation statistics

Economists, the Federal Reserve, the Biden administration and the American people were all hopeful that March would prove to be the peak of the pandemic price hikes. The April inflation reports suggest that might indeed be the case, even though one month may not be enough to conclusively call the end to the trend.

Also With the major central bankers showing readiness to bear responsibilities for the short-term economic slowdown to tame inflation, the market sentiment turns sour in early Thursday. However, anxiety ahead of the Fed‘s favorite inflation measure joins China’s upbeat PMIs to control the bears.

As the US dollar struggles to extend the latest run-up around a fortnight top, some of the Antipodeans and majors manage to pare recent losses. However, prices of crude oil and gold remain depressed while USDJPY reverses from a 24-year high amid downbeat Treasury yields.

BTCUSD and ETHUSD arent spared from the risk-off mood as the key cryptocurrency pairs drop for the fifth consecutive day.

Following are the latest moves of the key assets:

• Brent oil drops for the second consecutive day, down 2.5% near $112.75 at the latest.

• Gold declines for the fourth consecutive day as sellers attack $1,815 with 0.20% daily loss.

• USD Index retreats from two-week high, snaps two-day uptrend around 105.00.

• FTSE 100 slides around 1.5% but STOXX50 and DAX are both down near 2.0% by the press time.

• Wall Street closed mixed with Dow Jones‘ mild gains battling no major changes in Nasdaq and S&P500 by the day’s end.

• BTCUSD drops 3.70% to $1,9350 while ETHUSD loses more than 4.0% by flashing the $1,050 level at the latest