From Marc Chandler, Marc to Market, at Bannockburn Global Forex:
Overview: The US dollar is consolidating with a slight downside bias ahead of the June CPI report. The euro held above $1.00 but is still pinned in the trough. The rate hike by the Reserve Bank of New Zealand failed to have much impact. On the other hand, the JP Morgan Emerging Market Currency Index is lower for the fourth consecutive session. Most of the large markets in the Asia Pacific region rose, led by a 2.7% rally in Taiwan after the government promised to support local equities. However, in Europe, the Stoxx 600 is off about 0.5%, giving back yesterday’s gains. US futures are firmer, but the CPI will be released before the local opening. The US 10-year yield is slightly softer near 2.91% today, while European yields are 2-4 higher with wider spreads.
Gold posted an outside down day yesterday and initially saw a little follow-through selling that pushed it to almost $1722 before some bids returned. It is slightly higher in Europe (~$1728-$1730). August WTI fell to almost $93.65 today, its lowest level in nearly three months. It has recovered a little through $97. US natgas is up almost 3% after falling 4% yesterday. Europe’s natgas benchmark is up 4.25% today after a 6.75% gain yesterday. Iron ore snapped a three-day fall and rose almost 3.90%, today, the most since late June. Copper is slightly firmer after falling more than 8% over the past three sessions. September wheat is up almost 1%. It has fallen nearly 9% over the past two sessions....
....MUCH MORE
