USD Mixed Ahead of Inflation Data as Stocks Fall and Oil Rebounds

The US dollar ended the North American session mixed and little changed against most of the major currencies. The greenback was near unchanged against the EUR, GBP, AUD, and CHF but lower against the JPY and CAD while gaining against the NZD.

Traders appear reluctant to establish larger positions ahead of the next round of US inflation data, with the Producer Price Index set for release Thursday at 8:30 AM ET followed by the Consumer Price Index on Friday. These reports will help shape expectations for the Federal Reserve.

The U.S. Treasury yields moved higher across the curve, with the 2-year yield up 1.7 basis points to 4.3957%, the 5-year yield up 1.6 basis points to 4.5662%, and the 30-year yield up 0.2 basis points to 5.2475%. The larger increases at the shorter end of the curve reflect some caution ahead of the inflation reports.

The major US stock indices closed lower, with the Dow industrial average leading the declines, falling 628.04 points or 1.18% to 52,791.29. Amgen was the biggest drag on the Dow, falling $44.06 or 10.08% to $393.17.

Crude oil rebounded after testing its 100-hour moving average, with the price initially climbing to $94.72 before tumbling to a low of $91.82. The price subsequently rebounded and is trading near $94.03 late in the session.