VAST MAJORITY OF FOMC SAY PRUDENT TO SLOW QT FAIRLY SOON

BOC: IF THINGS EVOLVE AS EXPECTED, WILL BE APPROPRIATE TO CUT

BOC SAYS JUNE RATE CUT IS WITHIN REALM OF POSSIBILITIES

MNI BRIEF: Brazil Inflation 3.93% In March, Lowest In 9 Months

MNI Brief: China Targets Standards Update To Support Trade-ins

MNI BRIEF: Fitch China Outlook Downgrade Regrettable - MoF

MNI: US MAR TREASURY BUDGET -236.5B

US Treasury Auction Calendar

EZ/UK Bond Supply Calendar: 3/7/15+ Year BTP Auction Thursday

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Greenback Sustains Losses Despite Higher CPI

FOREX
  • The greenback headed into the April CPI release as the worst performing currency in G10, as markets positioned for a soft reading. This quickly reversed course following the release, with the greenback rallying in tandem with US yields while equities fell. Core CPI was 0.2ppts ahead of expectations, driven by services inflation. This helped drive rate expectations higher and prompted a wave of risk off.
  • EUR/USD traded through overnight lows of 1.0526 to narrow in on the 1.0500 handle, before the price action partially reversed into the close - with markets adopting the view that the bar to larger hikes from the Fed remains high. For EUR/USD, however, the trend remains lower. Weakness through 1.0500 would open the YTD and cycle lows of 1.0472 next.
  • Elsewhere, EUR/GBP traded well, with the cross topping 0.8550 as the European Union warned that they would suspend the post-Brexit trade deal should the UK move to unilaterally revoke the Northern Ireland protocol. The renewed concern surrounding the Brexit Withdrawal Agreement pushed GBP to be the poorest performer in G10 Wednesday.
  • UK preliminary GDP data crosses Thursday, with markets expecting 1.0% growth on the quarter and 8.9% on the year. US PPI data is also due, in which markets will be watching for any follow through of inflationary pressure after Wednesday's above-forecast CPI. ECB's de Cos and Makhlouf are also due to speak.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
Energy BulletsCommodities
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
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.