America’s FX news roundup: The dollar cools when the CPI flattens.
On August 11, 2021, the following forex news will be available for North American traders:
The primary event was the CPI report, which was informative. The data were broadly in line with forecasts, but because inflation has stalled and the core m/m figure has fallen to 0.3 % from 0.9 % , the market has concluded that inflation has peaked.
The result was a significant drop in the value of the dollar, which caught many people off guard. It originally dropped 20 pips across the board before adding another 10-20 in the next 15 minutes.
On the inflation front, you can see the war playing out in the market, and it’s such a significant battle that I don’t get the impression that anyone, even the FOMC, is tied to either side of the discussion.
The dollar remained stable for a while, but was reduced further in the 10-year auction. The number of people passing through was the most in at least a year. The dollar sank another 15-20 pips as a result, but subsequent discussion blamed foreign bidders, and others speculated that it could have been a one-off, thus the dollar subsequently recovered that leg of falls.
Looking around, the dollar’s movements have been quite constant, but there has been some extra purchasing in the antipodeans. That could be due to commodity prices, but CAD hasn’t benefited much from oil, so I’d look elsewhere. Delta is being being monitored at the moment, and there are some little optimistic indicators in the US, so that could be it.
Speaking of oil, the White House issued a statement suggesting it would put pressure on OPEC to pump more, sending the price to $66.67, but later in the day they stated it was a long-term effort. Despite a fairly gloomy inventory data, this reverses the losses.
Gold has been written off this week, yet it is still bouncing back from $1680 and having a good day alongside crypto.
Markets News :
- Gold up $22 to $1751
- US 10-year yields down 1.5 bps to 1.327%
- WTI crude oil up $1.00 to $69.29
- S&P 500 up 8 points to 4444
- NZD leads, JPY lags