Forex today: DXY has its best day for a while, +0.24%

Forex today saw the DXY making its best performance in a while, rallying up to 97.87 between a range of 97.43-97.87.

Yields, on the other hand, were down for the day by 1.44% within a range of between 2.1495-2.1949% and this is somewhat out of kilter with the Fed chat of late and the resurgence in the dollar. However, Fed's Evans did say he is nervous about recent soft inflation, challenging to get back to 2%.

Meanwhile, there were no significant data releases and markets drifted lower in general. Energy led the way down and a sharp break in commodities was indeed making the inflation outlook a concern. EM's underperformed in the wake of a rising dollar that was driven in part by sounds of the 'tax-break-cut-drums' coming from Speaker Ryan who wants to see 3% growth and said the US can't get there without tax reform.  

The biggest story in FX was the pound, yet again. Carney said in effect, that they are nowhere near to hiking rates. The pound dropped from 1.2757 o/n to 1.2602 the low in the US session. USD/JPY was 3 pips from the pivotal daily cloud base at 111.82 today and drifted lower to finish close to Monday closing prices awaiting the BOJ Minutes, all Industry Index & Kuroda speech today.  The antipodeans were hit on the broadly-based USD demand & commodity slide. The CAD suffered on WTI hit again to below $43.00bbls and CAD went to 1.3285 the high before settling back on profit taking to close the session out at about 1.3260/70. 

No key events today other than BoJ minutes/Kuroda speech.

Key notes from US session:

• Wall Street closes lower amid slumping crude oil prices and profit taking
• Fed's Kaplan: Inflation has been notably sluggish, though that's not all bad
• US House Speaker Ryan: Tax reform is key to U.S. economic growth