Sovereign bond yields in Germany and the UK showed little movement as investors assessed in-line U.S. inflation against rising oil prices and steady UK economic growth, creating a cautious tone in fixed-income markets.
The U.S. dollar and most Asian currencies saw little movement after a U.S. inflation report met expectations, reducing the likelihood of a September rate hike from the Federal Reserve.
The Japanese yen has weakened back toward the key 160 per dollar level, erasing half its gains from recent joint U.S.-Japan intervention, as investors question the scale of Washington's resources to defend the currency.
The U.S. dollar and euro were little changed as foreign exchange markets await a key U.S. inflation report and monitor rising oil prices linked to geopolitical risks in the Strait of Hormuz.
The Canadian dollar traded near an eight-week peak against its U.S. counterpart, supported by a significant rally in crude oil prices and the positive impact of strong domestic jobs data from the previous week.
Deutsche Bank has been officially appointed by China as a renminbi clearing bank, the first European institution to receive the designation. The move aims to deepen financial ties and support Beijing's strategy to promote the international use of its currency.
The Japanese yen is weakening against the U.S. dollar, approaching the key 160 level as the effects of a late-July joint intervention with the U.S. fade. The currency has now given back nearly half the gains it made following the move to support it from a 40-year low.
The benchmark 10-year U.S. Treasury yield rose toward multi-month highs, driven by a surge in oil prices and hawkish signals from the Federal Reserve ahead of key inflation data.
The U.S. dollar retreated after July's Consumer Price Index met forecasts, reducing market expectations for an aggressive Federal Reserve rate hike at its upcoming September meeting.
