US inflation for February was high – CPI MoM was 0.8% and 7.9% YoY, but met market expectations. Reversing yesterday’s price action, Asian stocks were higher on the day and European stocks are lower, as the Ukraine war intensifies. US stocks are opening lower following news of the high inflation while US Treasury yields race higher, the 10Yr approaches 2.00%. The US dollar is mixed against its peer currencies. The European Central Bank announced no change in interest rates, but surprised markets by accelerating the undoing of its monetary stimulus. Gold is trading higher at $2000 per oz and WTI oil higher at $113 per barrel.
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March 10, 2022
EUR/USD 1.1018 GBP/USD 1.3132 USD/CAD 1.2788 AUD/USD 0.7348 USD/JPY 116.16 USD/CNH 6.3218 USD/ILS 3.2657 USD/MXN 20.9528 USD/CHF 0.9304 USD/INR 76.3050 USD/BRL 5.0563 USD/SGD 1.3592 USD/DKK 6.7535 USD/SEK 9.6708 USD/NOK 8.9585
The dollar is mixed -- higher against the safe-haven Swiss franc and Japanese yen, and lower against the Australian and New Zealand dollars. High US CPI for February met market expectations. Investors are increasingly concerned with potential stagflation, so stocks were sold and bond yields moved higher.GBP
The UK pound moved several times between 1.3145 and 1.3195, and broke below the base following news of high US inflation. There were no economic releases today, but traders await a slew of data tomorrow.EUR
The euro rallied to its highest level of the day at $1.1121 following hawkish news from the ECB in accelerating the unwinding of monetary stimulus, but then fell to $1.1000 as the dollar strengthened on the high US CPI data. The ECB’s deposit facility rate of -0.50% was left unchanged.CADThe loonie moved little overnight, as higher oil prices were offset by a stronger USD. There were no economic data releases today, but Canadian jobs data will be released tomorrow.ASIA/PACIFIC
The Australian dollar is the top performing G-10 currency today, fueled by higher commodity prices and reports from analysts that Australia’s central bank will raise rates sooner and higher than previously predicted.
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