Forexlive Americas FX news wrap: Empire Fed improves, US dollar climbs then fades

<ul><li><a href="https://www.forexlive.com/news/empire-fed-july-manufacturing-index-11-vs-43-expected-20230717/">Empire Fed July manufacturing index +1.1 vs -4.3 expected</a></li><li><a href="https://www.forexlive.com/news/may-canadian-wholesale-inventories-35-vs-35-expected-20230717/">May Canadian wholesale inventories +3.5% vs +3.5% expected</a></li><li><a href="https://www.forexlive.com/news/eia-sees-a-slight-dip-in-us-share-production-in-august-20230717/">EIA sees a slight dip in US share production in August</a></li><li><a href="https://www.forexlive.com/news/putin-says-response-being-prepared-for-crimea-bridge-attack-20230717/">Putin says response being prepared for Crimea bridge attack</a></li><li><a href="https://www.forexlive.com/news/us-semiconductor-association-asks-biden-not-to-impose-more-china-sactions-20230717/">US semiconductor association asks Biden not to impose more China sactions</a></li></ul><p>Markets:</p><ul><li>Gold flat at $1955</li><li>US 10-year yields down 1.3 bps to 3.80%</li><li>WTI crude oil down $1.33 to $74.10</li><li>S&amp;P 500 up 0.5%</li><li>CAD leads, NZD lags</li></ul><p>The dollar strengthened early in the day on a strong Empire Fed and Yellen floating more China inbound investment controls. Flows also likely played a part and yields rose early before retracing.</p><p>At the peak of the dollar move, the euro fell to 1.1204 and AUD/USD to 0.6788 but those levels didn't last long as the early-NY dollar buying reversed. With that the euro rose to 1.1241 and AUD/USD to 0.6822.</p><p>Similar trades unfolded in cable and USD/JPY. The latter was particularly volatile once again as it rose to 139.40 from 138.00 only to retrace half in choppy trade as BOJ anticipation continues to build.</p><p>One standout move was in USD/CAD as the pair sank to 1.3161 from 1.3218 and that was despite declines in oil and other commodities on Chinese worries. The Canadian data was second tier but might have helped, as did ongoing hawkish comments from Macklem.</p><p>Later in the day, there was something of a standstill as we await the US retail sales numbers tomorrow.</p>

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