Inflation

Walmart and Target both struggled in the second quarter, but have they come through the worst of what 2022 has to offer?

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

With peak inflation remaining a key theme for traders, attention now turns to UK CPI data at 07:00 BST.

The Reserve Bank of New Zealand has today raised the Official Cash Rate by 50 basis points to 3%. It is the RBNZ’s fourth straight 50bp hike in a row, in a tightening cycle that started back in October.

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.

We saw some strong moves overnight following signs that inflation may have peaked, but a glance at the Cleveland Fed’s Nowcast places a fly in the ointment.

Walmart issued a profit warning last month, lowering the potential for any surprises when it reports results.

Tucked in between this week's FOMC meeting, U.S Q2 GDP data, and earnings reports from U.S mega tech is the release of Australian Q2 inflation data

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!

Whilst inflation has been hard to ignore, we are now seeing signs that the cooling of inflationary forces are finally showing up in some consumer prices.

UK inflation has continued to surge at a rate that a 50-bp hike now appears the more likely move at the BOE’s next meeting.

The ASX200 is trading 32 points higher at 6654 at 3.10 pm Sydney time.

USD/JPY continues to defy gravity and rose to a multiyear high, with US inflation ripping higher and the BOJ repeatedly broadcasting their ultra-loose monetary policy.

US inflation was hotter than expected in June, fuelling aggressive Fed bets. Stocks & gold plunge while the USD soars back over 108.00.

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

UK data kicks off at 07:00 BST, with final CPI reads for Europe, a BOC interest rate decision and the all-important US inflation report.