Markets steady as traders digest higher inflation news

Markets steady as traders digest higher inflation news

Financial markets are relatively unchanged in light trading and low volatility, as market participants continue to digest yesterday’s CPI figures and this morning’s PPI data - both were higher than expected. Initial Jobless Claims for the week of May 8 were near expectations. Foreign stocks are lower overnight, but the S&P is opening higher. Oil prices are lower on news that the gasoline pipeline supplying the east coast has resumed service. US Treasury 10Yr yields are steady at 1.68%, ahead of today’s auction of $27 billion of 30Yr Treasuries, which may see the highest yield since 2019. The dollar is largely unchanged.

 

“Patience and fortitude conquer all things."
Ralph Waldo Emerson
  • FX Rates
    May 13, 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 US dollar is mixed, but largely unchanged overnight. Traders are focused on yesterday’s high CPI and this morning’s PPI release - both exceeded expectations. PPI for April MoM increased by 0.6%, higher than the expected 0.3%, but lower than 1% reported for March. The Swiss franc was the top G-10 performer versus the dollar, gaining 0.28%, and the Norwegian krone the poorest performer, losing 0.31%.

    GBP

    The UK pound was mixed overnight, and is trading slightly lower from yesterday’s close. There were no UK economic releases today, so traders are focused on higher US CPI and the UK’s plans to reopen their economy.

    EUR

    The euro is unchanged, but its month-long uptrend remains intact. There was no EZ economic data releases today, next week there is a full docket, including Employment, GDP and CPI.

    CAD

    The Canadian dollar weakened slightly amid a retreat in oil prices and ahead of a speech today by Bank of Canada Governor Tiff Macklem. He is expected to comment on the CAD’s outperformance over the three weeks -the USD/CAD dropped from C$1.26 to C$1.2050, a move of nearly 5%.

    ASIA/PACIFIC

    As a group, Asian currencies rallied from earlier losses and now are largely unchanged overnight. Next week, China will release key economic data, including Industrial Production, Jobless Rate, and Retail Sales for April.

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Scott Petruska
WRITTEN BY
Scott Petruska

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