Forexlive Americas FX news wrap: The good times roll into Thursday’s CPI report


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Markets:

  • WTI
    crude
    oil
    up
    $0.93
    to
    $82.35
  • US
    10-year
    yields
    down
    1.8
    bps
    to
    4.28%
  • Gold
    up
    $8
    to
    $2371
  • GBP
    leads,
    NZD
    lags
  • S&P
    500
    up
    1.0%
    to
    record
    5633

In
some
ways
the
market
makes
sense
and
in
other
ways
it
doesn’t.
The
New
Zealand
dollar
was
the
laggard
today
and
that
was
a
straightforward
decline
on
a
dovish
RBNZ.
The
market
had
priced
in
something
that
aligned
more-closely
with
the
RBA
but
it
looks
like
they’re
willing
to
cut
sooner,
with
October
now
priced
at
71%
even
as
RBA
pricing
is
40%
for
a

hike

in
November.

Another
move
that
was
totally
sensible
was
in
the
pound
as
it
rose
on
some
hawkish
comments
from
the
Bank
of
England
chief
economist.
Again,
he
highlighted
that
the
UK
is
facing
some
unique
issues
around
wage
growth
and
sticky
inflation.
The
market
has
fallen
in-and-out
of
that
mode
in
the
past
few
months
but
ultimately
it
will
go
where
the
decision-makers
take
it.
Today
that
was
a
60
pip
rally
in
GBP
that
helped
to
drag
the
euro
along
with
it.

USD/JPY
bids
may
have
fuelled
by
risk
sentiment
as
that
pair
rose
43
pips
to
161.73
but
otherwise
there
wasn’t
a
strong
sense
in
FX
that
equities
were
up
strongly.

That’s
where
this
market
gets
more-difficult.
The
1%
move
in
the
S&P
500
was
the
first
one
(in
either
direction)
in
six
weeks
and
it
comes
despite
the
week’s
headline
risk
tomorrow
with
CPI.
The
day
didn’t
start
out
with
much
and
futures
were
flat
but
the
steady
buying
in
stocks
began
to
add
up,
including
a
7
day
rally
in
Apple
shares
and
a
fresh
jump
in
Nvidia.

Time
will
tell
whether
that
was
a
foolish
move
ahead
of
CPI
but
it
may
also
speak
to
a
market
that’s
moved
beyond
worries
about
inflation.

A
notable
divergence
those
was
in
fixed
income
where
the
Treasury
auction
was
strong
and
yields
have
fallen
in
5
of
the
past
6
days.
The
VIX
also
rose
2.8%
today
in
a
sign
that
someone
out
there
is
looking
for
protection.