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.
May 13, 2021
EUR/USD 1.2087 GBP/USD 1.4038 USD/CAD 1.2134 AUD/USD 0.7725 USD/JPY 109.59 USD/CNH 6.4522 USD/ILS 3.2934 USD/MXN 20.1320 USD/CHF 0.9068 USD/INR 73.4250 USD/BRL 5.2838 USD/SGD 1.3338 USD/DKK 6.1535 USD/SEK 8.4140 USD/NOK 8.3675
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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