- US August PPI +8.7% y/y vs +8.8% expected
- EU proposes the rumored €180mWh cap on non-gas fuelled power generation and windfall taxes
- US EIA weekly crude oil inventories +2442K vs +833K expected
- ECB's Villeroy: Monetary normalization is fully warranted in the eurozone
- US Business Roundtable CEO survey shows sagging optimism but no freefall
- Bitcoin dips below $20,000
- Canada manufacturing sales for July -0.9 % vs. -0.9% estimate
- Hurricane season may finally be arriving
Markets:
- WTI Crude oil up $1.12 to $88.43
- US 10-year yields down 1 bps to 3.41%
- S&P 500 up 9 points to 3941
- Gold down $6 to $1695
- JPY leads, USD lags
The market largely took a breather today after yesterday's big CPI-driven moves. The PPI data was a bit better on the headline but worse on the core and didn't appear to move markets.
In general, the US dollar edged higher in a moderate recovery from the European lows. The move was particularly notable late in the day as equities sagged but it didn't turn when equities shot higher late.
The EU unveiled some energy proposals but they were all leaked earlier. The euro fumbled around parity before falling 20 cents below late. On the day, the euro finished up just a handful of pips and that's not exactly inspiring, given the rout yesterday.
Tomorrow is US retail sales so we were in a bit of a data sandwich and that could be keeping a lid on as well.
Energy was an interesting trade as oil erased yesterday's decline and natural gas rallied 10%, including some large gains out the curve.
Earlier, Japanese jawboning weighed heavily on USD/JPY and boosted the yen broadly. The pair hit a session low of 142.56 before chopping up to 143.20 late.
