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Good morning. The dollar is trading on a stronger footing ahead of a producer price report that could lend further support. Firmness in the components that feed into the Federal Reserve’s preferred inflation measure—airfares, healthcare, financial services and insurance—might lift expectations for the core personal consumption expenditures deflator, due later this month, toward the 3.3% mark, reinforcing...
• Geopolitical jitters. US/Iran tensions dampen sentiment. Equities lower, oil firmer. Cyclical currencies like AUD & NZD weaken. AUD at ~2-month low.• Data pulse. US CPI confirmed an oil-driven acceleration in headline inflation. ECB expected to hike rates tonight. US producer prices also released.
Global Trends
Risk sentiment has remained on the backfoot with renewed hostilities in the Middle...
Surprising no one, the Bank of Canada left its policy settings on hold this morning, while warning that it faces a ‘dilemma’ in responding to the risks bearing down on the economy. Higher energy prices could feed a rise in generalised price pressures, but trade uncertainty remains a major headwind and the economy is expected to maintain considerable slack—limiting upside inflation risks...
Annual headline inflation hit a three-year high in the United States last month, but decelerated slightly on a monthly basis while a measure of underlying price pressures eased—averting a widely feared intensification and reinforcing the case for the Federal Reserve to hold rates steady.
The Bureau of Labor Statistics’ consumer price index rose 0.5% in May, slowing from April’s 0.6% gain. On...
• Market wobbles. Renewed tensions in the Middle East dampen sentiment. Tech stocks slip back again. AUD still on the backfoot. AUD underperforms.• Macro news. AU consumer confidence falls further below average. Doubts RBA may hike again. US CPI out tonight. Jump in US inflation may generate vol.
Global Trends
More wobbles and volatility across financial markets overnight. Tension and uncertainty...
Good morning. Financial markets are staging a muted recovery as the selloff in US technology stocks eases and tensions in the Middle East ratchet lower. Major indices are on course to extend yesterday’s advance at today’s open, and risk-sensitive assets are catching a bid, giving the euro, pound and yen room to gain against the dollar.
Oil prices are slipping from their highs as the conflict...