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11 Jun 2024

US CPI & Fed in focus

• Data & politics. European political concerns have weighed on the EUR. This & positive US jobs data at the end of last week have supported the USD.• US events. US CPI & Fed meeting in focus tonight. US core inflation forecast to slow & while the Fed should project few cuts this may already be priced in.• AUD cross-currents. European issues have boosted AUD/EUR. Positive US CPI signs & the Fed failing to exceed ‘hawkish’ expectations may help AUD. Economic and political developments in the US and Europe have shaken up markets over the past few sessions. The better-than-expected...

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Safe Haven Demand Rises

The dollar is advancing for a fourth session and Treasury yields are coming under pressure as uncertainty surrounding European political upheaval intersects with broader concerns over US policy direction heading into tomorrow’s inflation data and Federal Reserve meeting. North American equity futures are setting up for a weaker session and risk-proxy currencies like the Canadian dollar are drifting lower. The British pound is trading with a weaker bias after a softer-than-expected labour report helped firm odds on an easing in monetary policy by the autumn. According to the Office for National Statistics, unemployment climbed to a two-and-a-half year high at...

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