Dollar steady following CPI, ECB and Jobless Claims
June 10, 2021
EUR/USD 1.2183 GBP/USD 1.4149 USD/CAD 1.2089 AUD/USD 0.7750 USD/JPY 109.57 USD/CNH 6.3909 USD/ILS 3.2421 USD/MXN 19.6917 USD/CHF 0.8946 USD/INR 73.06 USD/BRL 5.0451 USD/SGD 1.3241 USD/DKK 6.1036 USD/SEK 8.2566 USD/NOK 8.2703
The dollar rose following CPI data that showed consumer prices increasing faster than expected in May. CPI gained by 0.6% versus 0.5%. May US inflation was upwardly revised to 5% YoY in May – the fastest pace in 13 years. Initially the dollar earned some buying interest on the news, but the momentum lacked follow through. Annual inflation tracked to 3.8% YoY, higher than 3.0% estimates. Jobless claims came in at 376K – better than previous 385K, but still higher than expectations.GBP
After dropping below 1.40 early this morning, the pound has since rebounded to session highs on dollar selling despite higher than expected US inflation figures. Sterling has been resilient to Brexit uncertainty in recent weeks, but the underlying sentiment continues to cap gains.EUR
The euro is up within range versus the dollar following the ECB’s anticipated decision to leave rates and easing programs unchanged. In a released statement, the ECB expects to keep interest rates at present or lower levels until inflation reaches 2%. The ECB also boosted the GDP forecast due to ongoing vaccinations and reopening efforts.CAD
Commodity currencies outperform G-10 peers amid higher raw-material prices and following higher than expected CPI numbers. CAD whipsawed in early trading this morning and is currently unchanged from yesterday’s close.ASIA/PACIFIC
The US and China had a first call since President Biden took office where the two nations agreed to strengthen trade and investment ties.
In Japan, PPI jumped to 4.9% in May – the highest since 2008. The USD/JPY cross rose above 109.70.
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