10 Jul 2023

Markets seem to be tiptoeing into a data-light week with a sense of trepidation.Equity futures are weaker, Treasury yields are ticking lower, and benchmark dollar indices are pushing higher ahead of the opening bell, suggesting that risk appetites remain relatively constrained after Friday’s big moves. The euro, pound, and Canadian dollar are all sitting in defensive positions, with technical indicators pointing to rangebound price action ahead. Inflation flat-lined in China last month, and a sharp decline in producer prices suggested that the world’s biggest manufacturer is beginning to export deflation. Headline consumer prices were unchanged in June relative to a year earlier, and...