The U.S. dollar closed higher against most major currencies, lifted by a modest increase in Canadian and Australian rates despite falling bond yields.
Key moves
- USD up vs EUR +0.13%, GBP +0.11%, CAD +0.46%, AUD +0.59%, NZD +0.47%, CHF +0.05%, JPY -0.15%
- Canada CPI 0.3% MoM, YoY 1.7% (vs. 1.8% expected); core measures steady; gas 16.1% YoY drop; shelter +3.0%; grocery +3.4%.
- U.S. July housing starts 1.428m vs 1.290m expected; permits 1.354m vs 1.386m expected.
- Atlanta Fed GDPNow Q3 falls to 2.3% from 2.5%; two FOMC members voted for a rate cut; Powell to speak at Jackson Hole.
- New Zealand Reserve Bank expected to cut the cash rate by 25 bps to 3.0%.
- U.S. Treasury Secretary Scott Bessent cites likely Putin‑Zelensky meeting and notes U.S. tariffs on Indian oil purchases.
- Yields fell: 2‑yr 3.754% (-1.9 bps), 5‑yr 3.827% (-2.8 bps), 10‑yr 4.310% (-2.9 bps), 30‑yr 4.911% (-3.1 bps).
Summary
The dollar’s modest climb was supported by a stronger Canadian dollar following softer inflation data and a robust U.S. housing market, while yields slipped across the curve. New Zealand’s anticipated rate cut added to a dovish tone, and geopolitical chatter – including a potential Putin‑Zelensky meeting and U.S. comments on NATO – kept risk sentiment elevated. Overall, the session saw the USD gain on a backdrop of mixed economic signals and forward‑looking policy expectations.
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