Global market wrap: dollar down, EUR/USD hits 1.2200 - ANZ

Analysts at ANZ offered a global market wrap for last week's closing sessions and weekend key events.

Key Quotes:

"The USD fell, treasury yields rose, equities climbed, and commodities gained.

The EUR surged on news that Chancellor Angela Merkel is likely going to be able to form a ‘grand collation’, solidifying her position and taking out some tail risks to EUR valuations.

EUR hit the 1.22 level, rising 1.4% on the day. The GBP also rose 1.4% on news that Spain and the Netherlands may favour a “soft Brexit” due to their close economic ties.

Yields spiked with the firmer-than-expected US core inflation outcome, but this was mostly unwound by the end of the US trading day.

Equities rose with stronger retail sales buoying consumer stocks.

European bourses rose 0.2-0.5% with US stocks up 0.7-0.9%.

Oil rose another 1% with WTI crude at USD64.30/bbl, while gold surged 1.3% on the weaker USD, despite solid risk sentiment."