Market close wrap-up: dollar bounces back - Westpac

Analysts at Westpac offered a market wrap for a better day for the U.S. dollar on Friday's closing session.

Key Quotes:

"Global market sentiment: The US dollar rose sharply after a stronger-than-expected CPI inflation report. Oil fell around 2% amid news of an increase in shipments from Libya.

Interest rates: US 10yr treasury yields are roughly unchanged at 1.69%, after earlier slipping to 1.66% and then bouncing to 1.70% post-CPI. 2yr bounced from 0.72% to 0.77%. Market pricing of the Fed funds rate rose, implying around a 20% chance of a rate hike in September, a 70% chance by December, and 100% by May 2017.

Currencies:  The US dollar index closed around 0.9% higher. EUR fell from 1.1240 to 1.1150. USD/JPY rose from 101.80 to 102.46. AUD fell from 0.7520 to 0.7475. NZD fell from 0.7315 to 0.7254. AUD/NZD rose from 1.0260 to 1.0313."