Forex today: dollar and rates down, euro and sterling on a tear
The DXY was lower today, down -0.41% at the time of writing while the ten-year US benchmark -0.08% in a range between 2.2711% - 2.3031%. US data was mixed and second tier while most of last week's poor performances were still casting a dark cloud over the US economy in the eyes of traders.
In stark contrast, today's European data and CPI made for a higher euro. 1.1845 was the fresh high for the year. Sterling was also on a tear, making a high of 1.3204 offered. The yen took advantage from a weaker dollar as well and was eyeing a break of the psychological 110 handle, although held up at 110.20 from 1110.74 highs. The Dow Jones printed a fresh record high of 21,927.30 and held up the yen's advance.
Metals were well bid again and offered the commodity bloc a lift with the Aussie testing on the 0.80 handle ahead of today's major risk event in the RBA and possible jawboning in respect to the value of the Australian dollar; AUD/USD too high for comfort for the RBA? The Kiwi moved into a phase of consolidation mid morning until making a break higher back onto the 0.75 handle. The USD/CAD lost the 1.25 handle on a sell-off to 1.2431 with WTI spiking to $50.53, continuing with its bullish tone.
Key events ahead in Asia
Nikkei Mfg PMI, China Caixin Manufacturing PMI and the RBA interest rates decision
Key notes from US session
- Econ. advisor Cohn: Trump is 100% committed to getting tax reform done this year
- US Pending Home Sales: A broad-based rebound in June - Wells Fargo
- Chicago PMI fell to 58.9 in July from 65.7 in June, lowest level in three months
- Fed’s Fischer: Sound monetary policy can boost confidence in economic growth
- Copper hit fresh high on Monday and ignores overbought technicals