CPI moderates but is still high, dollar lower, stocks higher
US inflation data reported this morning showed a moderating, yet still high, CPI. CPI for July was 0.5% MoM, lower than June’s 0.9%, but 5.4% YoY repeats June’s high figure. Although both were near consensus, the dollar fell on the news and equity futures moved higher. US Treasury yields edged higher for the sixth day. Trading is light as investors process divergent views from Fed speakers this week.
August 11, 2021
EUR/USD 1.1742 GBP/USD 1.3871 USD/CAD 1.2502 AUD/USD 0.7380 USD/JPY 110.46 USD/CNH 6.4803 USD/ILS 3.2099 USD/MXN 19.9633 USD/CHF 0.9212 USD/INR 74.44 USD/BRL 5.1970 USD/SGD 1.3565 USD/DKK 6.3362 USD/SEK 8.6970 USD/NOK 8.8733
The dollar is lower across the board, with losses against most major currencies between 0.10% to 0.50%, following news that showed inflation moderating yet remaining at high levels. Prior to release of the report, the dollar had moved little overnight. Chicago Fed President Charles Evans spoke yesterday delivering a somewhat dovish message. Evans wants to see “a few more “ jobs before the Fed begins tapering and argues that current high inflation levels are temporary.GBP
After trading lower in Asia, the British pound is slightly higher following US inflation data. UK reported that Covid-related deaths reached a three-month high, and said the government had ordered 35 million doses of the Pfizer vaccine. Traders await a full docket of economic data releases tomorrow.EUR
The euro managed to hold above the key $1.17 level overnight, and has moved higher following US inflation data. European stocks are higher across the board. German rail workers declared a two-day strike, seeking a 3.2% pay increase and other payment, but the news had little impact on the euro.CAD
The Canadian dollar edged higher, trading around the key 1.25 level. Oil and other commodity prices are mostly lower. There are no economic data releases today.ASIA/PACIFIC
The Japanese yen and Chinese yuan moved little overnight.
The New Zealand dollar is the top performing currency, gaining 0.5% against the US dollar. Yesterday, New Zealand's job advertising data for July showed an increase of 28% above pre-Covid levels.
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