What to know on Thursday August 12:
The US dollar rose throughout the first half of the day but ended the day in the red against most of the major rivals. the the greenback has changed coursee after the release of US inflation data, as the annual figure was confirmed to be 5.4%, although the base figure was revised down to 4.3%, the first sign of d inflation could peak.
Meanwhile, Fed officials continued to cool down expectations for the cut. Kansas City Federal Reserve Chairman Esther George said the time had come to revisit the parameters of monetary policy, although she added that the tapering did not imply any subsequent adjustment in policy rates. Further still, she also noted that the way forward towards standardization of policies “is likely to be long and bumpy. “
Wall Street was boosted by US inflation headlines, with the DJIA and the S&P 500 reaching new records. The Nasdaq Composite failed to follow suit and closed in the red.
EUR / USD rallied from a new low to 1.1705, but the rally stalled around 1.1750, keeping the tone lukewarm. GBP / USD exhibited similar behavior, approaching the 1.3900 level before retreating. USD / JPY stabilized around 110.40 correcting but still poised to move higher.
Commodity-linked currencies also rose to familiar levels. The price of gold recorded a nice rise in the midst of declining demand for the dollar. The shiny metal came in at $ 1,751.30 per troy ounce. Crude oil prices ignored a disheartening report on EU stocks, as the EIA Oil Stocks Change stood at -0.447 million, worse than expected.
Yields on the US Treasury soared ahead of US inflation figures, but retreated thereafter, ending the day slightly lower.
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