Yesterday, the US CPI was a pleasant quantity because it got here in decrease than expectations. Right now, the PPI knowledge was the precise reverse. The headline numbers for the month weren’t solely increased, however the prior months had been revised increased as properly.
The USD and yields transfer increased initially after the report, however the reminiscence of the Chair feedback this week the place he talked about decrease inflation and the way it is not nearly inflation but in addition the employment image, together with the CPI knowledge, despatched yields and the greenback again to the draw back.
Later at 10 AM the Michigan shopper confidence stayed close to low ranges (and under expectations) after the sharp, stunning drop from final month.
All of which helped to ship the dollar decrease vs all the main currencies in the present day. On the finish of the day, the USD was unchanged vs the CAD, however fell by -0.21% vs the CHF and had declines of -0.38% to -0.60% vs the opposite main indices (the USD fell -0.60% vs each the GBP and the JPY).
For the buying and selling week the USD is ending largely decrease with solely rising modesly vs the NZD. The bucks modifications for the week vs the majors confirmed:
EUR, -0.61percentGBP, -1.35percentJPY, -1.78percentCHF, -0.08percentCAD, -0.035percentAUD, -0.53percentNZD +0.43%
Wanting on the US debt market in the present day, the yields moved decrease with the 2-year the largest decliner. The yield spreads proceed to chip away on the detrimental yield curve in the present day:
2 12 months yield 4.457%, -4.9 foundation factors. For the week, the yield fell -15.4 foundation factors.5 12 months yield 4.107%, -1.6 foundation factors. For the week, the yield fell -12.3 foundation factors.10 12 months yield 4.186%, -0.6 foundation factors. For the week, the yield fell -9.5 foundation factors. 30 12 months yield 4.398%, -0.5 foundation factors. For the week, the yield fell -8.1 foundation factors
Wanting on the spreads:
2-10 12 months unfold, -27.1 foundation factors which is the least detrimental shut since January. For the week, the unfold rose 5.7 foundation factors. 2-30 12 months unfold, -5.9 foundation factors which is the least detrimental shut additionally for the reason that finish of January. The unfold rose by 7 foundation factors this week.
Along with decrease CPI, the yields had been helped by beneficial 3 and 10 12 months notice auctions (met by sturdy home demand). The 30 12 months bond was a distinct story, however 2 out of three outweighed probably the most tough 30 12 months public sale.
In different markets:
Crude oil this week fell -1.14% to $82.21. Gold rose $19.54 or 0.82% to $2410.78 Silver rose fell by -$0.47 or -1.38% to $30.77Bitcoin rose by $1778 to $57617
Subsequent week,
Monday:
Empire manufacturingFed Chair Powell at 12 PM ET
Tuesday
Canada CPIUS Retail SalesNZD CPI at 6:45 PME ET
Wednesday:
UK CPIAustalia employment knowledge 9:30 PM ET
Thursday:
UK employmentECB charge determination (no change anticipated) US weekly jobless claimsPhilly Fed Manufacturing
Friday
UK Retail SalesCanada Retail Gross sales.
The key earnings releases for the week embody:
Monday, July 15
Goldman Sachs, BlackRock,
Tuesday, July 16
Financial institution of America.United well being group.Progressive.Morgan Stanley..Charles Schwab..PNC.Interactive Brokers. JB Hunt,
Wednesday, July 17
Johnson & Johnson,United,Alcoa,Uncover,Kinder Morgan
Thursday, July 18
Taiwan Semi Conductor,Nokia,DR Horton,Netflix,Intuitive Surgical,PPG
Friday, July 19
American Specific,Halliburton,,Comerica,Vacationers
When are the Magnificent 7 releasing its earnings this cycle?
Alphabet, July 23Microsoft July 23Tesla July 23Amazon, July 25Meta Platforms, July 31Apple, August 1Nvidia, August 15
