#Yields stabilized lower, #USD cooled significantly and #Stocks bounced back. BOC added 50 bp to their base rate and warned of more to come. #USDCAD sank from 1.2675 down to sub 1.2500. #USDJPY hit 20-yr high over 126.00. US PPI lifted to all-time highs (11.2%) following 40-yr highs for CPI (8.5%) on Tuesday. All 13 measures of UK Inflation were higher than expected with CPI at 30-yr highs (7.0%) and a strong CORE (ex. Fuel & Food) at 5.7%, RPI 9.0% (important for wage settlements) and PPI 19.2%.
Today – US Weekly Claims, Retail Sales, Business Inventories & UoM Sentiment, ECB & CBRT Policy Announcements, ECB’s Lagarde, Fed’s Harker & Mester, Earnings from Morgan Stanley, Goldman Sachs and UnitedHealth.
Biggest FX Mover @ (07:30 GMT) #NZDUSD (+0.50%) Recovered from 0.6756 lows following RBNZ announcement to close at 0.6796, testing 0.6830 now. Next resistance 0.6850 & 0.6875. MAs aligned higher, MACD signal line & histogram moving higher & over 0, RSI 64 & rising, H1 ATR 0.00099, Daily ATR 0.00703.
