The dollar is holding steady after fading a drop following the US CPI report yesterday here.The details make for a bit of a softer read with many quar
The dollar is holding steady after fading a drop following the US CPI report yesterday here.
The details make for a bit of a softer read with many quarters of the market calling for “peak” inflation to settle in the US, as lower gasoline prices are likely to weigh down inflation in April (that is if oil holds at current levels).
Treasury yields dropped heavily and equities surged but that didn’t hold until the end of the day. The former recovered some ground and is sitting a little higher on the day while the latter saw gains evaporate in a ‘sell the rip’ move. US futures are holding slightly higher on the day though, hinting at some pushing and pulling still going into European trading.
In FX, USD/JPY is continuing to keep above 125.00 so that is a positive takeaway for buyers while EUR/USD is closing in on its March low with GBP/USD flirting with a potential firmer break below the 1.3000 mark.
The kiwi is holding lower, loosing further ground as it trades 0.5% down against the dollar to 0.6815. The RBNZ hiked rates by 50 bps and while that gave a brief boost to the currency towards 0.6900, that has since quickly faded despite the central bank reaffirming a more aggressive policy path.
From a technical perspective, the drop also comes as price came close to a test of the 200-day moving average @ 0.6902.
There won’t be much in Europe to shake things up but UK inflation data may give some food for thought before the next BOE policy meeting on 5 May.
0600 GMT – UK March CPI figures
0700 GMT – Spain March final CPI figures
1100 GMT – US MBA mortgage applications w.e. 8 April
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
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