Forexlive Americas FX news wrap: Big big bid at the front end continues but USD unfazed

<ul><li><a href="https://www.forexlive.com/news/us-december-ppi-10-vs-13-expected-20240112/">US December PPI 1.0% vs 1.3% expected</a></li><li><a href="https://www.forexlive.com/centralbank/ecbs-lane-interest-rate-cuts-are-not-a-near-term-topic-20240112/">ECB's Lane: Interest rate cuts are not a near-term topic</a></li><li><a href="https://www.forexlive.com/news/baker-hughes-oil-rigs-2-in-the-current-week-to-499-20240112/">Baker Hughes oil rigs -2 in the current week to 499</a></li><li><a href="https://www.forexlive.com/news/the-state-of-the-us-consumer-and-the-economic-risks-according-to-jp-morgan-20240112/">The state of the US consumer and the economic risks, according to JP Morgan</a></li><li><a href="https://www.forexlive.com/news/us-says-it-expects-some-sort-of-retaliation-from-the-houthis-20240112/">US says it expects some sort of retaliation from the Houthis</a></li><li><a href="https://www.forexlive.com/news/canadian-retail-spending-ticked-lower-in-december-rbc-20240112/">Canadian retail spending ticked lower in December – RBC</a></li><li><a href="https://www.forexlive.com/news/reminder-monday-is-a-holiday-in-the-us-20240112/">Reminder: Monday is a holiday in the US</a></li></ul><p>Markets:</p><ul><li>Gold up $19 to $2047</li><li>US 10-yaer yields down 3.4 bps to 3.94%</li><li>US 2-year yields down 11 bps to 4.15%</li><li>WTI crude oil up 77-cents to $72.72</li><li>S&amp;P 500 up 4 points to 4783</li><li>JPY leads, EUR lags</li></ul><p>The big question everyone is asking for the second day is: Why such a strong bid in two-years? Yields are down 25 bps since the post-CPI peak on Thursday with a near-relentless bid. There was some ammunition with a softer PPI number today and others are pointing to Yemen and the upcoming PCE report factors but that's a stretch.</p><p>Curiously, other markets didn't really buy into what was happening in bonds, sparking talk (unfounded so far as I can tell) that some kind of fund blowup might be behind the moves. The US dollar initially fell with yields, boosting the euro to 1.0986 — a session high — but it slowly backed off to 1.0949 last.</p><p>Most dollar trades followed a similar path of strength early in the day with a reversal as Europe closed up shop. Importantly, the US is closed on Monday so that could have created some lumpy flows.</p><p>As for Yemen, oil rallied to $75.25 early only to slide all the way back to $72.79 on steady selling in New York. That's typical of geopolitical events that don't truly touch on oil supply (though I acknowledge the risks). The US continues to say that it doesn't want a war.</p><p>Have a wonderful weekend.</p>

This article was written by Adam Button at www.forexlive.com.