Inflation

Traders in Japan reached an important milestone on Friday: The benchmark Nikkei 225 recovered the entirety of the losses from August 5's "Black Monday". The carry trade situation appears to have stabilized, with institutional investors…
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On the surface, the big data out of the US on Wednesday confirmed US CPI expectations for easing. Inflation was lower, as expected. Yet the market reacted by going in the opposite direction, pricing less easing by the Fed and yields higher.…
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Today's US CPI data release is likely to be the most important for the whole week, in light of what happened to the markets last week. The most recent drop (and so far tepid recovery) was driven primarily around the outlook for the US…
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After last week's market chaos, traders are likely getting to grips with a new reality, particularly with cable. As a result of the shift in perception, the BOE is not expected to cut at a slightly faster rate than the Fed. But both are…
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Economists and analysts are pretty much in unison in expecting that the RBA rate will keep steady at the conclusion of its August meeting tomorrow. The main issue for how the Aussie reacts, however, is what is forecast to happen beyond…
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USDCHF stuck in a channel The US dollar sank further as USD inflation woes weigh heavy, and the Fed is expected to start trimming rates this year. On the chart, sentiment has turned from cautious to highly bearish. A move below this…
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USDCAD tests major support The Canadian dollar advanced over the greenback after CPI data almost confirmed the Fed will cut rates in September. The pair has turned south at 1.3740 from a previous lengthy consolidation on the chart. This…
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So far, the pound has been one of the winners of the General Election. Cable has generally been higher over the course of the campaign, as polls showed who would win by a wide margin. And, unlike in France, the polls ended up being largely…
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Last week, gold trended higher in the wake of weaker US data. It wasn't just gold, but the whole of the base metals complex were upbeat as well, with silver and platinum going higher. Part of that could be explained by weakness in the…
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