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Financial markets see political thread

The USA currency and bond yields both went to its worst level for the last 7 months against the pack of six major peers.

They were pressures by an unexpectedly low report published yesterday, almost at the same time with Fed’s decision to raise interest rate hike and go hawkish with bonds.

Prices went down last month, and annual CPI increase went down to the 1.7 percent, which is the lowest numbers since May two years ago. On April it was measured by 1.8 percent.

Markets’ worries wiped away all the rise of 10-year yields, achieved after the previous year election.

Sales also went down by 0.3 percent at the end of the spring, and it is the biggest drop since last year’s winter, and of course, it is definitely below 0.1 percent increase, predicted by economists earlier.

Risk sentiment went under the influence of fear for political turmoil. It happened right after the published report in the newspaper that Donald Trump currently is under the investigation by a counsel Rober Mueller, accused in possible influence on the justice system.

According to this data, counsel is working on the investigation of interference of Russia in the presidential election. Meanwhile, Trump’s representatives officially declined this report.

The data appeared right after the House Representative Republican Scalise was shot by a man mad by the policy of Donald Trump. President has visited his colleague in the hospital and later tweeted that he is going to be ok despite dangerous condition right now.

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