Market Brief, North America

The dollar continues to grind higher as traders stick to safe positions ahead of today’s inflation print and Federal Reserve decision. Equity futures are essentially flat, commodity prices are inching lower, and most major currency pairs are treading water. This morning’s consumer inflation report is expected to show price growth cooling, giving Fed officials a modicum of reassurance as they plot a more cautious easing cycle ahead. Economists polled by the major data providers expect headline inflation to have risen 0.1 percent in May, slower than the 0.3 percent pace in the month before, with the core measure holding at...

The dollar is holding near five-week highs this morning as Federal Reserve rate cut hopes continue to fade and renewed political uncertainty roils the euro area. Equity futures are setting up for a more subdued open, Treasury yields are down on safe-haven flows, and commodity prices are broadly lower. Friday’s non-farm payrolls report forced traders to push the expected initiation of the Fed’s easing cycle further into the future. Job growth surged, with a 272,000-position gain topping market expectations, and wage growth accelerated, rising 0.4 percent month-over-month. Overnight index swaps are currently pricing in 36 basis points in easing by...