From Marc Chandler at Bannockburn Global Forex:
Overview: The US CPI has become one of the most important high-frequency economic reports for the capital markets. The dollar is going into the report narrowly mixed against the G10 currencies. Comments by BOJ Governor Ueda about the weakness in consumption of non-durable goods was seen by some as reducing the likelihood of a change in policy next week. The greenback is threatening to snap a five-day drop against the yen. Most of the G10 currencies are in narrow ranges ahead of the US CPI. Emerging market currencies are also mixed, Russia, Thailand, and Hungary are the weakest, while the South African rand, Czech koruna, and the Chinese yuan lead the advancers. The Chinese yuan on- and offshore traded at their best levels since the end of January.
Equities are trading higher. Most of the large markets in the Asia Pacific region rose but Japan, which saw continued profit-taking. The Hang Seng and mainland shares that trade in Hong Kong surged by more than 3% led by the tech sector Europe's Stoxx 600 is recouping most of the yesterday's 0.35% decline, which ended a three-day advance. US index futures are firmer. European 10-year yields are 1-3 basis points lower, with the 10-year UK Gilt yield off by more than three basis points after a soft employment report, which saw a larger than expected decline in wage pressure. The 10-year US Treasury yield is off almost one basis point ahead of today's data and auction. Gold continues to consolidate after reaching almost $2200 at the end of last week. Initial support is seen near $2170 and then $2150. April WTI fell to a two-week low yesterday around $76.80 before recovering to settle slightly below $78. Today, it has reached $78.70....
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