CNY

The dollar is beating a swift retreat this morning after Bloomberg Businessweek published a late-June interview in which Donald Trump took aim at overvaluation in the currency, suggesting that he might take policy actions to depress it against the yuan and yen. The renminbi is inching higher, but the Japanese yen is up more than a full percentage point against the greenback, and most other majors are strengthening in relative terms. This comes after yesterday’s June retail sales report provided another reminder of the golden rule in global economics: never, ever bet against the American consumer. So-called “control group” receipts...

The dollar is stabilising this morning, but is still headed for a weekly loss after yesterday’s US consumer price index report showed inflation easing even more than markets had expected, triggering a stampede into risk-sensitive assets. Two- and ten-year yields are inching higher after falling to their lowest since March, equity futures are setting up for a more positive open after experiencing a violent sectoral rotation – the Russell 2000 small-cap index advanced by the most against the Nasdaq 100 since November 2020 – and currency markets are entering a consolidative phase. The pound and euro are both adding to...