Forexlive Americas FX news wrap: The USD moves lower on the back of lower rates. Markets ignore CPI/wage gains.
Forex new for North American trading on October 13, 2021
- WTI crude oil settles at $80.44
- US dollar firms after FOMC minutes, stocks edge lower
- FOMC minutes: Fed staff outlined $15B/month taper path
- Left-for-dead commodity rallies are coming back to life
- US treasury auctions off 30 year bonds at 2.049%
- US Sec of State Blinkin: Time is running short in terms of Iran returning to compliance in nuclear talks
- EIA: US crude oil output to fall 260k bpd this year vs 200k bpd prior estimate
- European equity close: Solid gain European indices closed s boost FTSE 100 to range top
- Gold rebounded back toward the 100/200 day moving averages
- US dollar gives back the post-CPI move and falls to the lows of the day
- Slovak president asks ECB's Kazimir to consider resignation
- BOE will no longer hold secret briefings with banks
- There isn't enough investment going into energy
- Wage pressure lifts the US dollar
- US September CPI +5.4% y/y vs +5.3% expected
- The CHF is the strongest and the USD is the weakest as the NA session begins
- Gold shines ahead of US inflation data
The US CPI data came out for the month of September and continued to show increased inflation pressures. The headline number came in touch stronger than expected 5.4%. The core measure came in as expected 4.0%. Both are well above the 2% target in addition the wage component showed a higher-than-expected 0.8% increase the versus 0.3% last month.
The initial shock sent US yields higher, and the greenback higher as well. Spot gold which was up around $17 at the start of the US session, moved down toward unchanged levels. US stocks gave up some early premarket gains. However, the moves started to reverse course.
- US yields started to reversed back to the downside. The 10 year is trading down -3.8 basis points. The 30 year is down nearly 7 basis points at 2.036% after trading as high as 2.107%. Helping the 30 year was a strong auction for that tenor with high international demand
- Gold start to rush back to the upside. After moving from plus $17.02 unchanged, the price is currently trading up $32 on the day and just below the $1800 level at $1792 (the high price reached $1796.12 (click here for technical story)
- The dollar reversed its upward move and extended to new session lows
In contrast, the Dow industrial average moved down -0.77% at it's lows. The NASDAQ index stayed positive even at it's lows (at 0.04%). The S&P was in between those two indices with lowest level bottoming near -0.5% and the highest level peaking near +0.5%.
The final numbers in the US stock market had the NASDAQ and the S&P snapping their three-day losing streak. The Dow industrial average closed fractionally lower by -0.53 point. That still was good for the fourth consecutive decline.
Below are the high/low levels, the high/low changes in points and % changes.
Major European indices close mixed with Spain and Italy lower. The German, France and UK indices were higher.
IN other markets:
- Spot gold is trading up $33 or 1.88% at 1792.58.
- Spot silver is up $0.49 or 2.18% at $23.04
- WTI crude oil futures are trading near unchanged at $80.57
- Bitcoin is rally in afternoon trading is trading up $1150 at $57,140