The dollar is decisively lower today, retreating 0.40% vs. its index basket of currencies and trading 103.86, below recent support at 104.00. Dollar losses are concentrated against Scandinavian currencies (-0.83% vs. SEK, -0.51% vs. NOK and -0.49% vs. DKK), and APAC (-0.95% vs. NZD and -0.61% vs. AUD). Other dollar declines include -0.47% vs. EUR, -0.44% vs. GBP and -0.33% vs. JPY.
Canadian CPI dipped in January, M/M 0% (0.4% est.) and Y/Y 2.9% (3.3% est.). Canadian bond prices surged following the data, translating into lower yields and sparking CAD weakness. USD/CAD is +0.25% after gapping from 1.3474 to 1.3510 following the inflation data.
U.S. Treasury yields moved lower in all tenors. The 10-year yield is -0.035% at 4.248%. Lower yields often coincide with higher equities, but not today. U.S. equity index declines are led by a 1.17% decline in the Nasdaq and 0.73% loss in the S&P500.
The economic calendar is quiet this week, key highlights tomorrow’s Mortgage Applications and FOMC Minutes (from the Jan 31st rate decision). Thursday’s data includes Weekly Jobless Claims and Existing Home Sales.
