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26 Jul 2024

Unsurprising US Inflation Print Leaves Markets in Consolidation Mode

The Federal Reserve’s preferred inflation measure climbed incrementally as expected in June, leaving monetary policy expectations unchanged across the financial markets. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index rising 0.2 percent (0.182 unrounded) from the prior month, matching market forecasts for a modest acceleration from May’s 0.1-percent (0.127 unrounded) print. On a year over year basis, core price growth held at 2.6 percent, the same as in May, slightly above economist estimates.  The overall personal consumption expenditures index rose 0.1 percent relative to the prior month, up 2.5 percent from...

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Fear Eases As US Economy Accelerates

A safe-haven bid in foreign exchange markets appears to be fading this morning, with the Japanese yen and Swiss franc losing altitude as downward pressure on risk-sensitive asset classes begins to ease. The dollar’s gains are slowing, Treasury yields are holding steady, and equity futures are setting up for a positive open after a paroxysm of selling saw major indices suffer their biggest losses in more than two years during Wednesday’s session. High-yielding currencies are climbing as carry trade flows hesitantly return, and risk proxies — like the Canadian and Australian dollars — are advancing on a generalised basis. Yesterday’s...

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