USD Generally Firmer, NOK Benefits From Domestic CPI

The BBDXY sits at best levels of the day as Europe walks in, with Asia-Pac participants happy to fade some of Friday’s weakness, aided by a downtick in S&P 500 & Euro STOXX 50 futures, as well as a pullback from best levels in Chinese stocks on the back of increased deflationary/consumer demand worry in the world’s second largest economy (albeit with Chinese stimulus expectations still elevated).

• That leaves the broad USD measure comfortably above its mid-June lows, trailing only the NOK in the G10 FX space, with the latter benefitting from a firmer than expected round of CPI data.
• Conversely, the AUD & NZD find themselves at the bottom of the G10 pack, with the high beta and China-sensitive nature of those currencies weighing given the prevailing dynamics.
• The latest rounds of Fed, ECB & BoE speak provide the highlights of today’s G10 docket, with little in the way of tier 1 data to note.