MNI: PBOC Net Injects CNY14.2 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Higher At 7.1876 Fri; -1.22% Y/Y

MNI: BOJ Tankan: Key Sentiment Rises, Solid Capex Plans

MNI BOJ DEC TANKAN LARGE MFG INDEX +14; SEPT 13; MEDIAN +12

MNI INTERVIEW2: Poland To Push For EU Defence Fund

MNI BRIEF: Trump Likely To Let Powell Serve Full Term-Moore

MNI: UK DEC GFK CONSUMER CONFIDENCE INDEX -17

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

FOREX: EURUSD Reaches Two-Month Low Following US Inflation Data

FOREX
EM BulletBulletMarketsFixed Income BulletsForeign Exchange Bullets
  • Stronger-than-expected September inflation data in the US was released alongside higher-than-expected weekly jobless claims and while prompting immediate volatility across currency markets, the mixed figures have left the USD index close to unchanged on Thursday.
  • An initial blip higher on the CPI figures was immediately reversed, echoing the move lower for front end yields in the US. Understandably, this was most notable for USDJPY which after printing 149.55, quickly traded down to fresh session lows of 148.30.
  • While some intra-day volatility remained, this immediate post-data range held in place for USDJPY throughout the remainder of the session. Topside sights are on 150.76, the 50% retracement for the Jul 3 - Sep 16 bear leg.
  • EURUSD’s reaction was not as significant and despite some two way action, the bias remains tilted to the downside for the pair. Late comments from Fed’s Bostic, who effectively closed the door on a 50bp cut in November, assisted EURUSD to the lowest level in two months.
  • The pair briefly reached 1.0900 with 1.0881 marking the next support point, the 76.4% retracement of the Aug 1 - Sep 25 bull leg.
  • Haven demand amid some moderate weakness for equities places the Swiss franc at the top of the G10 leaderboard today, as EURCHF edged back below 0.9400 and sits close to 0.9350 mas we approach the APAC crossover.
  • UK GDP and Canadian employment data headlines the calendar on Friday. US PPI is also set for release.
235 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Stronger-than-expected September inflation data in the US was released alongside higher-than-expected weekly jobless claims and while prompting immediate volatility across currency markets, the mixed figures have left the USD index close to unchanged on Thursday.
  • An initial blip higher on the CPI figures was immediately reversed, echoing the move lower for front end yields in the US. Understandably, this was most notable for USDJPY which after printing 149.55, quickly traded down to fresh session lows of 148.30.
  • While some intra-day volatility remained, this immediate post-data range held in place for USDJPY throughout the remainder of the session. Topside sights are on 150.76, the 50% retracement for the Jul 3 - Sep 16 bear leg.
  • EURUSD’s reaction was not as significant and despite some two way action, the bias remains tilted to the downside for the pair. Late comments from Fed’s Bostic, who effectively closed the door on a 50bp cut in November, assisted EURUSD to the lowest level in two months.
  • The pair briefly reached 1.0900 with 1.0881 marking the next support point, the 76.4% retracement of the Aug 1 - Sep 25 bull leg.
  • Haven demand amid some moderate weakness for equities places the Swiss franc at the top of the G10 leaderboard today, as EURCHF edged back below 0.9400 and sits close to 0.9350 mas we approach the APAC crossover.
  • UK GDP and Canadian employment data headlines the calendar on Friday. US PPI is also set for release.