FREELAND: CANADA WON'T ESCALATE OR BACK DOWN ON US TRADE FIGHT

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI: PBOC To Aim To Drive Inflation Higher- Advisors

MNI: China To Issue More Bonds As Stimulus Targets Consumption

MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows

EZ/UK T-Bill Calendar: 8/13/28/50-Week BTF Auction on Monday

EZ/UK Bond Supply Calendar: 4.125% Jul-29 Gilt Due on Tuesday

MNI: CANADA OCT WHOLESALE SALES +3.3%; EX-AUTOS +0.5%

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

USD Rally Loses Momentum As Yields Can't Breach Friday Highs

FOREX

The early positive USD impetus lost momentum as US yields failed to break above Friday session highs. The BBDXY did break through Friday's highs, getting close to 1224.60, but we now sit back near 1222.90, around +0.10% above NY closing levels.

  • Much of the focus was on the early upward impetus in US yields with the 2yr getting to 4.12%, a continuation from Friday NY trade, which was buoyed by the rise in consumer inflation expectations and hawkish Fed. We couldn't through Friday's highs though and now sit back at around 4.105%.
  • There was some NZ data but that didn't move market sentiment (PSI and food prices). NZD/USD sits down slightly, last around 0.6195/00, with some support evident ahead of the 0.6180 level, which is a multi-week low.
  • AUD/USD hasn't drifted too far away from 0.6700 (last 0.6705/10), with a chunky option expiry at this level potentially a factor.
  • USD/JPY got to a high of 134.13, and we sit just below these levels currently, despite the pull back in US yields from earlier highs. Dips in USD/JPY to 133.60/70 were supported.
  • ECB's Nagel stated that core inflation should slow before the summer, but stated the central bank still has work to do on the inflation front. EUR/USD sits slightly lower for the session, last around 1.0985.
  • Looking ahead, BoE's Cunliffe will speak, along with ECB President Lagarde. Later on in the US, the Empire manufacturing prints, along with the NAHB index. The Richmond Fed's Tom Barkin is also due to speak.
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.