The dollar ended the North American session mixed, holding near unchanged against the euro, pound, Australian dollar and Swiss franc while slipping against the yen and Canadian dollar. Treasury yields climbed across the curve as traders positioned ahead of this week's Producer Price Index and Consumer Price Index releases.
The dollar is ending the session near unchanged against the euro, pound, Australian dollar and Swiss franc, while it is lower against the yen and Canadian dollar and higher against the New Zealand dollar. The subdued action comes as traders appear reluctant to establish larger positions ahead of the next round of U.S. inflation data.
Traders brace for PPI and CPI
The Producer Price Index arrives Thursday at 8:30 AM ET, followed by the Consumer Price Index on Friday. Those reports will shape expectations for the Federal Reserve, and until they land, traders appear reluctant to commit to bigger bets.
Yields rise across the curve
Treasury yields moved higher across the board. The two-year yield reached 4.3957%, up 1.7 basis points. The five-year yield rose to 4.5662%, up 1.6 basis points. The ten-year yield climbed to 4.7922%, up 0.8 basis points, and the 30-year yield edged up to 5.2475%, up 0.2 basis points. The larger moves at the short end reflect caution ahead of the inflation reports: hotter-than-expected PPI or CPI prints would make it harder for the Fed to ease policy, while softer data would give policymakers more room.
Stocks slide while currencies stay calm
Currency markets stayed calm even as U.S. stocks fell, with the Dow industrial average dropping 628.04 points, or 1.18%, to 52,791.29 after disappointing trial results for Novartis' cardiovascular drug weighed on Amgen, its biggest drag. Separately, Iran-backed Houthi forces launched coordinated missile and drone attacks against several southern Saudi cities and energy facilities, injuring 73 people, adding a geopolitical premium to oil markets. Still, neither development has translated into sharp moves in the major currency pairs.
Apart from those headlines, it was a quiet session overall, with the currency market waiting on Thursday's and Friday's data to set the next direction.
Source: investingLive
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