EUR +0.13%JPY -0.15%GBP +0.11%CHF +0.05%CAD +0.46%AUD +0.59%NZD +0.47%
The NZD was one of the weakest ahead of the expected interest rate cut by the Reserve Bank of New Zealand. The CAD was also weaker after Canada's July CPI rose 0.3% MoM (in line with estimates) while the YoY rate slowed to 1.7% (vs. 1.8% expected, 1.9% prior), showing a softer inflation profile. The Bank of Canada’s core measures were steady to slightly lower, with median at 3.1%, trim at 3.0%, and common at 2.6%. Gasoline prices fell 16.1% YoY, shelter costs climbed 3.0% (driven by rent +5.1%), and grocery prices accelerated to +3.4% YoY, led by spikes in coffee, confectionery, and fruit. Regionally, Newfoundland & Labrador saw the sharpest acceleration, boosted by electricity costs. The softer CPI has pushed USDCAD higher.
In geopolitical news, Trump said that Europe is eager to end the war between Ukraine and Russia, noting that France, Germany, and the UK even want boots on the ground in Ukraine. He emphasized that while the U.S. will not put troops on the ground, Washington is helping to set up a meeting between Putin and Zelensky. Trump added that the relationship with Putin only matters if it leads to results, and that Zelensky must also show flexibility, including the possibility of giving up territory. He reiterated that Ukraine should not be in NATO and will not be part of NATO, but said some form of security assurances could be offered outside of NATO. He observed that Putin and Zelensky are “getting along a little bit better,” though it’s possible Putin may not want to strike a deal—something that will become clearer in the next couple of weeks. Trump also stressed that Russia is a powerful military nation, and maintained that having a warm relationship with Putin is a good thing.
Security guarantees unclear – While Trump floated “some form of security” for Ukraine outside NATO, the vagueness adds to uncertainty, especially for European allies who want firmer commitments.
Russia leverage reinforced – Trump’s acknowledgment of Russia as a “powerful military nation” and his framing of a warm relationship with Putin as “a good thing” could embolden Moscow, impacting both negotiations and market perceptions of risk.
Treasury Secretary Scott Bessent spoke on business news this morning said he believes a meeting between Putin and Zelensky is likely, noting that both sides seem ready to bring the conflict to an end. He described Monday as an optimistic and positive day. On policy matters, Bessent confirmed plans to raise tariffs on India over its purchases of Russian oil and said the U.S. is pushing back globally against digital services taxes. He added that Nvidia will now need a license for any new chip sales to China, signaling tighter export controls. Bessent also mentioned that meetings with Federal Reserve candidates are scheduled for right before and right after Labor Day. On the economy, he noted that much of the recent increase in PPI inflation came from investment services implying that the rise in the US stocks increased the PPI.
Tomorrow, the Federal Reserve will announce or meeting minutes from the July meeting. Two members of the FOMC voted for an interest rate cut. On Friday, Fed chair Powell will speak at the Jackson Hole Summit
Dow industrial average rose 0.02%S&P index fell -0.59%NASDAQ index fell -1.46%.Russell 2000 fell -0.78%.
So the rotation out of stocks headed overseas to Europe where the major indices closed higher with France closing at a new record. Spain and Italy closed at their highest levels in 17/18 years.
In the US debt market, yields move lower despite the dollars rise:
2-year yield 3.754%, -1.9 basis points5-year yield 3.827%, -2.8 basis points.10-year yield 4.310%, -2.9 basis points30-year yield 4.911%, -3.1 basis points This article was written by Greg Michalowski at investinglive.com.Hence then, the article about investinglive americas fx news wrap 19 aug usd moves higher despite lower yields stocks was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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