US dollar climbs and yields jump after PPI data

A slightly-hot producer price index reading has caused an outsized reaction in the FX and fixed income markets. PPI was at +0.3% m/m compared to +0.2% expected but you wouldn’t know it was only a small miss from the market reaction. US 10-year yields have jumped to 4.15% from 4.10% and the dollar is broadly

Australia CFTC AUD NC Net Positions rose from previous $-51.8K to $-43.2K

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S&P 500 falls to a one-month low

The S&P 500 is on track to close at the lows of the week and the worst levels since July 11. I don’t love the look of that chart and the bond market isn’t offering much support here. US 10-year yields are up 6 bps to 4.14%. There is a bit of a retracement in

US August prelim UMich consumer sentiment 71.2 vs 71.0 expected

Prior was 71.6 Current conditions 77.4 vs 76.9 expected (76.6 prior) Expectations 67.3 vs 68.1 expected (68.3 prior) 1-year inflation 3.3% vs 3.4% prior 5-10 year 2.9% vs 3.0% prior I don’t have much use for this survey. It was pointing to a severe drop in consumer spending late last year and the consumer has

EUR/JPY corrects downward, poised for a consecutive weekly gain

Share: The EUR/JPY traded in the red below the 159.00 area after five consecutive days of gains. The cross closed Friday with 1.65% weekly gains, trading in highs since 2008.  Focus shifts to the Eurozone and Japan’s GDP for Q2, which will be released the following week. In Friday’s session, the EUR/JPY traded

FX Play of the Day Recaps: August 7 – 10, 2023

In a mostly quiet volatility week, our strategy discussions arguably went well, including strong bullish moves in USD/JPY and GBP/NZD. Let’s do a quick review and see how the strategies played out! USD/JPY 2-Hour Forex Chart by TV On Monday, our strategists pulled up on USD/JPY, wondering if the fresh decline in the pair was