- US July CPI 1.4% vs 1.6% exp
- Empire Fed -5.85 vs +7 exp
- NAHB housing market index at highest since 2007
- US July industrial production +0.6% vs +0.5% exp
- German minister says ‘no substantial change’ to the Greek program
- China’s Wen: falling inflation gives state more room to intervene, state media
- Fed’s Fisher: mon pol can’t cure what ails ya
- Canada Fin Min: CAD strength partly reflects fundamentals
- Seven banks delivered US libor probe subpoenas
- CAD leads, EUR lags
The larger euro declines came in Europe and it was flattish in the US despite a brief dip to 1.2262. Buyers ahead of support at 1.2260/40 snapped up the pair and a late-day challenge of 1.2295 fizzled.
USD/JPY was the focus for the second day as US 10-year yields hit 1.81% (closing above a key level). An early pop above 79.00 was wiped out by the soft US data, sending the pair to 78.59. The bulls regrouped, however, and pushed the pair back to 78.87.
USD/CAD fell to a three-month low, breaking below 0.9900 but failing to extend the declines in a meaningful way. A rally in oil and comment from Flaherty helped support CAD.
The commodity bloc was supported by the comments from Wen and AUD rebounded above 1.05.
The stock market is DOA as the S&P 500 closed essentially unchanged for the sixth straight session. Volume is languishing.