Headlines:
Markets:
– USD leads, AUD lags on the day
– European equities lower; S&P 500 futures up 0.1%
– US 10-year yields up 1.9 bps to 4.394%
– Gold up 0.5% to $2,389.83
– WTI crude down 0.1% to $78.72
– Bitcoin up 1.6% to $66,331
In the FX market, the reaction to the US CPI earlier in the week is starting to rebound. The dollar has been strengthening in recent sessions, supported by an increase in Treasury yields.
10-year yields are now at 4.39%, moving above its 200-day moving average. Following the inflation data, the low was at 4.31%, which has also helped boost USD/JPY. The pair has risen over 200 pips since the drop on Wednesday and early Thursday.
Meanwhile, EUR/USD is down 0.2% to 1.0843, with significant option expiries at 1.0850 keeping price action in check. The 100-hour moving average at 1.0835 is also a key level to monitor in the final days of the week.
Elsewhere, USD/CAD is up 0.1% to 1.3635 and AUD/USD is down 0.3% to 0.6655, as commodity currencies are slightly lagging in the aftermath of the CPI data.
In the equities market, European stocks are experiencing a decline, while US futures are showing more caution. Gamestop shares are down in pre-market trading following weaker revenue sales in Q1.