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Thursday, March 4, 2021

CPI runs hot, markets cool off

Forex news for North American trading on September 11, 2020:

Markets:

  • S&P 500 up 2 points to 3340
  • US 10-yaer yields down 1 bps to 0.67%
  • Gold down $4 to $1941
  • WTI crude oil up 2 cents to $37.31
  • AUD leads, GBP lags
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The CPI report was largely driven by a jump in car or truck prices nevertheless the effect on markets was small. Counter-intuitively, Treasury yields declined on the report but that might have now been more of a risk aversion trade, even if the timing was odd.

It was stock markets which were in charge over all. The early tone was positive nonetheless it only lasted 30 minutes before sentiment started to deteriorate. The weekly low held for some time and then gave way. Despite some adversity the dip buyers stepped in to salvage a small win in an otherwise bad week.

Commodity currencies tracked the move in the danger trade. The loonie was the underperformer in the group. It rose above 1.32 and last week’s high for a time before tracking straight back below.

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The main focus continues to be cable. A break to at least one.2865 early in Europe and again early in New York was soundly beaten back below 1.2800 but the European low held. There is some support nearby but bullish hopes likely rest on a big change in tactics from BoJo on the weekend.

The euro consolidated within Thursday’s range and few of the ECB comments had any effect.

Have a fantastic weekend.

Forex news for North American trading on September 11, 2020:

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