EUR/USD retests 1.19 as Europe punts Astrazeneca decision to Thursday
Europe is at least a month or two behind the US and UK in vaccinating its population. Share:
Stated simply, the European Medicines Association is stuck between a rock and a hard place: COVID cases are rising throughout the continent, but
the much-needed AstraZeneca vaccine has been called into question over a couple of reported cases of dangerous blood clots. With many countries across Europe already struggling to overcome logistical hurdles and vaccine skepticism among the populace, the concerns about vaccine side effects are the last thing the continent needs.
Shady US CPI data; 10 Year Auction and ECB ahead Shady US CPI data; 10 Year Auction and ECB ahead
Joe Perry March 10, 2021 3:21 PM
With the US auctions today and the ECB meeting tomorrow, price in both the DXY and EUR/USD can move in a hurry. Share:
The highly anticipated CPI data for February was released earlier today, and the core data was slightly worse than expected. The headline CPI print for the more closely watched YoY rate was in line at 1.7% vs 1.4% in January. However, the Fed is more concerned about the core Inflation Rate, which excludes the more volatile food and energy prices. The core inflation rate YoY down ticked from 1.4% in January to 1.3% in February, vs a 1.4% expectation. Curious as to how the core rate could be lower with higher energy prices and higher food prices? The BLS
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January 14, 2021SharePrint
Dovish Fed Governors cap dollar’s gains
A plethora of Federal Reserve Governors, notably Harker, Brainard and Clarida, along with some successful bond auctions, managed to cap the rise in US yields overnight, with the 10-year now over ten basis points off its recent highs. Harker said that the Fed would basically keep rates lower for longer. Brainard, always an uber-dove, said much the same and added that the Fed could increase bond purchases if necessary. Clarida noted that when the Fed does raise rates, they will only have to raise them slightly to reach a neutral policy stance. He added that the Fed would like to see one year of two per cent inflation before tightening. Despite the dovish chorus emanating from the Fed, the dollar finished the overnight session stronger. The dollar index rose 0.30% to 90.35 and has climbed to 90.40 this morning. That leaves the index mid-range with critical levels being 90.00 and 91.00.