U.S. Treasury yields are higher in all tenors today, reversing course from the previous two days of trading. Former St. Louis Fed President James Bullard reiterated what will likely be an oft-repeated sentiment at the Fed’s Jackson Hole Summit that starts today: ‘… the probabilities are that we are in a new regime that will be a higher interest-rate regime’ and that ‘inflation is above target today. Core inflation is likely to be sticky and come down rather slowly.’
The U.S. dollar has followed yields higher, gaining vs. the G10 pairs and lifting the dollar index 0.41%. The DXY tested the 103.50 level yesterday after reaching a 2-month high at 103.981 in early trading.
GBP/USD is on the threshold of re-testing support at 1.2600, the 5th test of that level since late June. Despite the recent decline the GBP is still +4.65% vs. the USD during 2023.
USD/JPY is +0.58%, continuing its 2-week sideways range. The USD is +10.01% this year, the dollar’s biggest gain among all major currency pairs.
The CAD has been the dollar’s most steady counterpart this year, -0.07%.
Oil prices are -0.30%, and gasoline -0.56%. Gold is in its 4th daily gain, +0.19% today and +1.63% since last Friday’s close.
Global equities are mixed again in minor gains and losses with investors sidelined prior to headlines from Jackson Hole.
