US Dollar Index retreats from multi-year high on cautious optimism ahead of US Retail Sales – by anilpanchal7 DollarIndex Recession Inflation Fed RiskAppetite
was St. Louis Federal Reserve President James Bullard and Federal Reserve Governor Christopher Waller. That said, Fed’s Bullard said, "So far, we've framed this mostly as 50 versus 75 at this meeting." On the same line, Fed’s Waller mentioned that markets may have gotten ahead of themselves by pricing a 100 basis points rate hike in July, as reported by Reuters.
Elsewhere, the US Bureau of Labor Statistics mentioned that the Producer Price Index for final demand in the US climbed to 11.3% on a yearly basis in June from 10.9% in May. This print surpassed the market expectation of 10.7%. Additionally, there were 244,000 Initial Jobless Claims in the week ending July 9 versus the previous week's print of 235,000 and market expectation of 235,000. The Weekly Jobless Claims were the highest in five months.
It should be noted that the easing difference between the 2-year and the 10-year US Treasury yields also probed DXY bulls the previous day. That said, the US 10-year Treasury yields ended Thursday around 2.95%, up 0.95% intraday, whereas the 2-year bond coupon dropped 0.75% to 3.12% at the latest. With this, the difference between the near-term and the longer-term bond coupons declined to 17 basis points versus 23 bps inversion on Tuesday.
Amid these plays, the Wall Street benchmark closed mixed and the S&P 500 Futures also print mild gains by the press time., expected 0.8% MoM in June from -0.3% marked in May, will be important to watch while keeping eyes on the Fed speakers for fresh impulse.A fortnight-old bullish channel restricts short-term DXY moves between 108.30 and 109.80.
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