CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI BRIEF: Fed's Goolsbee Sees Rates Fair Bit Lower In A Year

CANADA JOBLESS RATE +6.8% VS FORECAST +6.6%, PRIOR +6.5%

MNI China Daily Summary: Friday, December 6

MNI: PBOC Net Drains CNY288.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1848 Fri; -1.64% Y/Y

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

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

Greenback Plummets Following Lower July US CPI

FOREX
  • The USD index is seen 1.1% lower on Wednesday following the negative surprise for July US inflation data. The month-on-month headline unrounded was negative for the first time since May 2020 and the M/m core unrounded was the lowest since Sept 2021.
  • The kneejerk reaction was a significantly lower greenback across the board, however, the main beneficiary in the immediate aftermath was the Japanese Yen. USDJPY crashed 230 pips to 132.69 shortly after the release and despite a sharp pullback to 133.30, pressure on the pair extended over the next few hours all the way down to 132.03, comfortably below the lows registered prior to Friday’s jobs numbers.
  • In similar vein, EURUSD saw immediately strength and finally broke out of the 1.0100-1.0300 range it had been consolidating in for the past sixteen sessions. Key channel top resistance was briefly breached above 1.0352 coinciding with the horizontal breakdown area between 1.0341/50.
  • Unyielding support for US equity benchmarks continued to underpin the likes of AUD and NZD who look set to register gains of close to 2% as we approach the APAC crossover.
  • Worth noting there has been a decent bounce in the greenback in late trade as Fed rhetoric from both Evans and Kashkari hinted that today’s data should not alter their expected trajectories for rates. USDJPY relief rally was supported by US 10-yr yields rising back to pre-CPI announcement levels with the curve remaining steeper. The pair now roughly a full point off the day’s lows at 132.03.
  • Similar EURUSD selling sees the pair trade back to the 1.0300 mark, however, with major equities remaining close to the highs, there has been less of a pullback in antipodean FX and CAD that remain closer to their best levels of the day against the greenback.
  • Bank Holiday in Japan on Thursday with little data due throughout the APAC session. Less significant PPI and jobless claims highlight the US docket tomorrow.
Energy BulletsCommodities
Energy BulletsCommodities

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.