The dollar is only lower vs the CAD (-0.12%). Yesterday, the USDCAD was whipped around with the tariff news. Today, the price action has been up and down as well, just in a more narrow range. The 200 hour MA is being tested on the downside as the day begins. Buckle up.
On the tariff front, President Trump's steel and aluminum tariffs have gone into effect at 25% across-the-board. Canada has announced that it will enact $29.8 billion in retaliatory tariffs on the US.
A review of central banker comments overnight:
ECB President Christine Lagarde emphasized the need to set monetary policy to ensure inflation converges toward the 2% target, acknowledging that it cannot always remain precisely at that level. She warned that large economic shocks could make inflation more persistent and noted that trade fragmentation may cause more significant and disruptive relative price changes. While she refrained from providing forward guidance, she stressed the importance of maintaining clarity on the central bank’s reaction function.
Today the US CPI data will be released at 8:30 AM ET with the headline and core month-to-month readings expected to rise by 0.3%. The YoY expectation for the headline is for 2.9% versus 3.0% last month. The Core YoY is expected 3.2% versus 3.3% last month
2-year at 3.976%, +3.5 basis points5-year at 4.064%, +2.3 basis points10-year at 4.302%, +1.5 basis points30-year at 4.607%, +0.4 basis points
US stocks are higher after a volatile up-and-down session yesterday with the major indices all closing lower. Goldman Sachs reduced its end-of-year target for the S&P to 6200 vs 6500. The S&P closed at 5572 yesterday. The futures are currently implying
Dow up 220 points. Yesterday the index fell -470 823 points or -1.14%S&P up 40.68 points. Yesterday the index fell -42.49 points or -0.76%Nasdaq up 220 points. Yesterday the index fell -32.23 points or -0.18%German DAX, +1.75%France's CAC, +1.38%UK's FTSE 100 +0.65%Spain's Ibex -0.22%Italy's FTSE MIB +1.54%
In other markets:
Crude oil is trading up $0.75 or 1.3% at $66.98The EIA data weekly inverntory data will be released today. The private data was released late yesterday and showed:
Crude: +4.2M (exp. +2.0001M)Distillate: +0.4M (exp. -0.757M)Gasoline: -4.6M (exp. -1.882M)Cushing: -1.2MGold is down $-2.90 or -0.10% at $2912.72Silver is up $0.11 or 0.35% at $33.02Biitcoin is little changed and $82,906 This article was written by Greg Michalowski at www.forexlive.com. Read More Details
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