Economic Scepticism and Soft Inflation Weigh on Dollar
Euphoria surrounding the weekend’s US-China tariff climbdown is fading this morning, and the dollar is retreating in the face of a third consecutive monthly undershoot in inflation data. Treasury yields are pushing lower, equity futures are pointing slightly higher, and safe-haven currencies like the Swiss franc and Japanese yen are back to outperforming their risk-sensitive brethren. Consumer price growth slowed in the United States last month, potentially giving the Federal Reserve more breathing space as it seeks to address slowdown risks in the economy. According to data published by the Bureau of Labor Statistics this morning, the core consumer price...