CPI moderates but is still high, dollar lower, stocks higher

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.

“You must learn to let go. Release the stress. You were never in control anyway.”
Steve Maraboli, American author
  • FX Rates
    August 11, 2021

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    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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Scott Petruska
WRITTEN BY
Scott Petruska

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