USD pares early gains, NOK boosted by.........>

FOREX: USD pares early gains, NOK boosted by strong inflation numbers

- The stronger dollar theme post US jobs data, spilled over into Europe with the

DXY briefly trading above the 21-dma to 95.56, before fading.

- EURUSD touched two-week lows of $1.1526, but as USD longs unwound was quick to

pare losses with a move to $1.1574.

- In a similar move, GBPUSD briefly made a show under $1.2900 before settling

around $1.2940 ahead of UK data. A mixed release with soft Mfg/Industrial

Production offset by a narrowing Trade deficit, failed to react with cable

holding toward the upper-end of its range.

- SEK rallied to Sek10.4256 against the Euro after the weekend elections showed

the anti-immigration policy did not make the expected gains. 

- NOK is the main outperformer in G10 today following the strong underlying

inflation print (1.9% vs median 1.7%) and seen accelerating toward the Norges

Bank 2% target. Firmer oil prices also supported to Nok9.6991.

- Commodity tied FX remains defensive. AUD & NZD printed multi-year lows of

$0.7097/0.6513, while USDCAD stalled ahead of C$1.3200.