CPI

Investors fear more aggressive hikes will be on the way after CPI topped 10%

Sometimes the obvious needs to be said. And that is exactly what the BOC’s deputy governor said in his op-ed by stating inflation “remains far too high”.

The July Canadian CPI print came in weaker than June’s print and USD/CAD sold off. Traders may have been expecting an even weaker print, similar to that of the US CPI.

With the UK CPI and employment data this week, along with a China rate cut and US housing data, manufacturing data, and retail sales, GBP/USD could be in for some volatility.

This week expect to see more follow through price action from US inflation data and a focus on the consumer

In this week’s edition, we discuss the dollar’s recovery despite weaker inflation data, and talk up the prospects of the euro, pound and yen.

Perhaps a bit of basing and consolidation is needed for the metal to gear up for a clean breakout above $1800.

With the odds of 75 basis point hike having dropped, the Fed is careful not to push too hard against that...

June quarter Australian inflation data has surged to 6.1%, but below consensus expectations easing fears of a supersized 75bp rate hike when the RBA meets next week.

The headline mid-month inflation rate for July is 8.16% YoY , led primarily by rising food costs. This is the highest level of inflation in 21 years!

Although the June CPI reading for Canada was higher than the May reading, the headline was much lower than expected.

Will central banks be able to raise rates fast enough to keep higher inflation at bay, while simultaneously keeping the world out of a recession?

Hot CPI readings may hurt the economy so badly that the Fed may start cutting rates again in as early as Q1

The US CPI print came out much hotter than expected 9.1% YoY. This print, combined with the strong employment data, should give the Fed confidence to hike at least 75bps

If inflation comes in ahead of expectations, this will only raise speculation about aggressive monetary tightening

Annual CPI is expected to have accelerated to 8.8% in June from 8.6% in May.

GBP/USD rises after UK GDP, US CPI next, USD/CAD awaits the BoC rate decision.