- Initial jobless claims 239K vs 265K estimate
- US Q1 final GDP +2.0% vs +1.4% expected
- Germany June preliminary CPI +6.4% vs +6.3% y/y expected
- US May pending home sales -2.7% vs -0.5% expected
- Himino: BOJ must scrutinize newly emerging factors that are pushing up prices
- Fed's Bostic: Not ready to rule out further rate hikes if required, but does not see need
- BOE Tenreyro:Data could be consistent with slightly slower decline in inflation pressures
- BOE's Tenreyro: We have seen very little pass through of UK policy tightening
Markets:
- Gold float at $1907
- US 10-year yields up 13 bps to 3.84%
- WTI crude oil up 27-cents to $69.82
- S&P 500 up 0.4%
- AUD leads, EUR lags
The drumbeat of strong US economic data continued on Thursday with a drop in initial jobless claims and a substantial surprise to Q1 GDP on trade data revisions. The dollar jumped across the board on the numbers as yields rose to within striking distance of cycle highs.
USD/JPY led the way once again hitting 144.90 before stalling near the highs. That was a 60-pip rise from pre-data levels.
The euro also gave back all the German CPI-related gains from early in Europe in something of a sell-the-fact trade as the market begins to fret about a stagflationary scenario. The pair sank 80 pips in a straight line to 1.0860.
Cable fell by a similar amount as the GBP-volatility continues. It levelled out at 1.2610 in quieter late-day trading ahead of quarter end tomorrow.
Commodity currencies were able to lean against the strong US dollar as commodity/value trades did well throughout markets. AUD was particularly strong after today's retail sales data while USD/CAD touched 1.3285 early only to fall back to 1.3250 and touch a session low late.
