US CPI Recap: A Turning Point in the Inflation Debate?
If the “peak inflation” theme gathers steam in the coming weeks, we may look back at today’s inflation reading as a major turning point for the year-to-date market trends. In Monday’s CPI preview report, we noted that traders and economists...
US CPI Release Will Determine Dollar’s Trend
It is definitely inflation day today. China, Germany, and Italy have released their consumer inflation data, while the US will release theirs before the New York session begins. Historically, inflation data has rarely deviated from expectations without triggering a market...
Risk Assets or USD?
What will happen? This week several important macroeconomic reports will be presented. On Wednesday, the Bureau of Labor Statistics will publish the consumer price index (CPI), which accounts for most of the overall inflation. Moreover, on Thursday, the markets will...
Sterling Rides Wave of Risk Sentiment Ahead of GDP Report
In the United Kingdom, preliminary GDP growth data for the second quarter will hit the markets at 06:00 GMT Friday. The British pound has suffered heavy damage this year, falling behind even the war-ravaged euro despite a series of rate...
Reserve Bank of Australia Sees Flexible Path Forward
Summary The Reserve Bank of Australia (RBA) raised its Cash Rate by 50 bps to 1.85% at its August meeting and signaled that further rate hikes will be needed to bring inflation back toward target over time. Several elements of...
Weekly Economic & Financial Commentary: July Jobs Report Squashes Current Recession Fears
Summary United States: July Jobs Report Squashes Current Recession Fears Employers added over half a million jobs in July, which squashes arguments that the U.S. economy is currently in recession. While other measures of labor market strength have shown more...
Week Ahead: Fallout from BOE and NFP; Focus on CPI
This week expect to see more follow through price action from Non-Farm Payrolls and the BOE. In addition, watch the data to see if inflation has peaked or continued higher. Last week, the US Non-Farm Payroll print of 528,000 more...
Forward Guidance: Soaring U.S. Inflation to Ease Off in July
U.S. inflation numbers are expected to edge lower next week, dropping to 8.8% in July. The slowdown (the reading was at 9.1% in June) comes after inflation hit record levels following more than a year of persistent supply chain pressures,...
Cliff Notes: Disparate Consequences of Global Fight Against Inflation
Key insights from the week that was. 50bp rate hikes were seen in Australia and the UK this week, with both central banks also signalling that additional tightening is likely to be required in the months ahead. However, the economic...
US July NFP Expected to Slow
The headline number of job gains so far this year has left policymakers quite happy. But a look under the surface shows some troubling signs. And they are expected to be exacerbated by the data forecast for tomorrow. In the...