The dollar has regained some of its footing today after yesterday’s selloff. The U.S. Dollar Index is +0.19%, reversing some of yesterday’s 0.34% drop. Dollar gains among the G10 are concentrated vs. the skandi currencies: +0.68% vs. NOK, +0.38% vs. SEK and +0.30% vs. DKK. Other dollar gains against the majors: +0.74% vs. BRL, +0.45% vs. ZAR, +0.41% vs. MXN +0.29% vs. EUR, +0.26% vs. AUD and +0.23% vs. NZD.
U.S. yields are nearly unchanged compared to yesterday and are rangebound over the last week with traders sidelined until Friday’s Core PCE inflation data.
Consumer Confidence slipped this month, dropping to 100.40 from the prior month’s 101.30.
Canadian month-over-month CPI for May was 0.6%, above both the 0.3% estimate and April’s 0.5%. YoY CPI also surprised on the high side, rising to 2.9% (2.6% estimate) and outpacing April’s 2.7%. USD/CAD traded sharply lower following the CPI release, trading near trendline support at 1.3625, but has since recovered to the day’s mid-range.
USD/JPY continues to trade precariously close to 160.00 as traders test the Bank of Japan’s resolve to defend the JPY. USD/JPY lows are shallower by the day which suggests an upcoming attempt to break 160.00 resistance.
