ForexLive Americas FX news wrap: CPI and bond auction deal dual surprises

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Forex news for North American trade on July 13, 2021:

Markets:

  • Gold up $1 to $1807
  • WTI crude up $1.21 to $75.31
  • US 10-year yields up 5.5 bps to 1.4200%
  • S&P 500 down 15 points to 4369
  • USD leads, EUR lags

All the focus coming into the day was on the CPI report and it delivered fireworks with a surprisingly high print. However the market action wasn’t quite as convincing. The US dollar rallied 50 pips initially then began to give it back. On a few fronts, including cable, it ultimately made the round trip.

The second act was the bond auction and a surprise tail led to another wave of US dollar buying that was especially severe against the low-yielders including JPY and EUR. USD/JPY climbed to 110.60 from 110.30. EUR/USD was the big mover on the day, falling 83 pips to 1.1776 in a steady slide that took out last week’s low late in the day.

USD/CAD trailed the other commodity currencies ahead of the bank of Canada decision tomorrow. Even with oil back to $75, the loonie failed to sustain a bid as talk of corporate selling and hedging picks up.

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