Analysts at ANZ explained that the USD traded a touch weaker throughout the European trading session, but losses were pared through the New York session.
Key Quotes:
“Market activity remains range bound, with Thursday’s US CPI release the next major data point. Consensus expectations look for both headline and core inflation to consolidate recent highs of 2.9% y/y and 2.3% y/y respectively, although there is a reasonable weight of forecasts looking for the headline rate to hit 3.0%.”
“That could have some market impact as we have often seen outsized moves in fixed income on small inflation misses. The yield on the US 10-year note pushed higher to just above 2.97% and the yield on the 10-year bund was 2bps higher at 0.41%.”
“US equities benefitted from a lack of volatility as the end of the earnings season draws near. The S&P 500 was up 0.4% at the time of writing to near late-January highs. Key European indices closed higher, up 0.4-0.8%. WTI eked out a small 0.1% gain to $69.1/bbl and gold rose 0.2%.”
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