Dollar, bond yields dip on inflation data as stocks soar

Dollar treads water, US inflation data awaited for Fed direction

Cautious Fed Sends Stocks to Record Highs, Dollar Dips

The yield on the benchmark 10-year U.S. Treasury note fell Friday, capping its largest one-week decline in more than a month, as another soft inflation reading boosted expectations that the Federal Reserve will be cautious in raising interest rates.

Excluding the volatile food and energy categories, the so-called core CPI went up 0.1 percent in June on a seasonally adjusted basis, and was up 1.7 percent over the year, the same growth as in May. It is also benefiting from USA dollar weakness as signs the Federal Reserve will pursue only a gradual rate tightening path weigh on the greenback after Senate testimony from Federal Reserve chair Janet Yellen.

Weak auto sales, which have been down in the first half of the year, were not to blame this time: excluding that volatile category, sales were still down 0.2 per cent. Petrol stations, however, saw a 1.3 per cent drop in sales last month, a time when Americans traditionally hit the road for summer holidays, pushing petrol prices higher. In particular, core retail sales which exclude automobiles, declined by 0.2% instead of posting an equivalent percentage improvement that was expected by analysts.

Final data from the Ministry of Economy, Trade and Industry showed that Japan's industrial production declined more than estimated in May. The struggling department store sector fell 0.7 per cent while online stores sales rose 0.4 per cent. "Although the Fed had been expected to raise [interest] rates once more this year, a closely followed Wall Street forecasting site now puts the odds at close to zero". In raising interest rates four weeks ago, the Federal Reserve brushed off three months of decelerating consumer price gains as "transitory", saying they expect improvements in the labor market to soon boost prices.

TOKYO, July 14 (Reuters) - The dollar was little changed against a group of peers early on Friday, as currency investors remained cautious ahead of US inflation data due later in the session, which is expected to set the greenback's near-term direction.

Luxury phone brand Vertu shuts down
Nokia founded it in 1998, and the company had been handed down from multiple ownerships since. Vertu designed and decorated the devices in accordance with their own wish and liking.

CPI inflation slowed from 2.7 percent in February, the highest level in almost five years, to 1.9 percent in May. He sees support at 95.

Extending early slide, the greenback dropped to an 11-day low of 1.3012 against the pound. Spot gold traded almost $13 per ounce higher (+1%) to $1,231/oz, its highest since before the 4th of July holiday.

South Africa's rand hit a two-week high against the greenback.

The US dollar added 0.08 percent to 1.3746 against the Singapore dollar while the Malaysian ringgit was up 0.01 percent to 4.2908.

Latest News