Yesterday, US inflation data was mixed, but the market reaction was not. Core inflation in the US posted its strongest gains this year, and the yearly figure accelerated more than expected to 3.1% in July. However, headline inflation eased more than expected to 2.7%. Normally, core inflation is the measure the Federal Reserve (Fed) focuses … Read more

Markets Monthly headline and core US CPI inflation printed bang in line with expectations at respectively +0.2% M/M and +0.3% M/M yesterday. Annual reading showed a stabilization on the overall level (2.7% Y/Y) and an increase from 2.9% Y/Y to 3.1% Y/Y for the core gauge (matching highest level since January 2025). More importantly from … Read more

Dollar continued to stay soft in Asian session today, carried over from Tuesday’s post US CPI weakness. US Treasury Secretary Scott Bessent added to the policy discussion by urging Fed to consider a 50bps rate cut in September to “make up for the delay” in starting its easing cycle earlier this year. Bessent argued that … Read more

Markets US July inflation numbers lead today’s agenda. Consensus expects headline CPI to rise by 0.2% M/M with annual figure ticking up from 2.7% to 2.8%. Core CPI is estimated to accelerate to 0.3% M/M and 3% Y/Y (from 2.9%). It’s the second of three Summer inflation reports which Fed Chair Powell suggested would be … Read more

RBA cuts cash rate 0.25ppts to 3.6%, with more cuts assumed to be needed to keep inflation at target. Worst-case outcomes on global trade have been avoided, but RBA is now more pessimistic about near-term growth in output and productivity. The RBA Monetary Policy Board (MPB) cut the cash rate by 0.25ppts to 3.6% following … Read more

The EUR/USD pair dipped to 1.1620 on Tuesday following sharp swings in the previous session. Investors are bracing for the release of US inflation data, which could reshape expectations for the Federal Reserve’s interest rate policy. The July CPI is forecast to rise by 0.2% month-on-month, down from 0.3% in June, while the annual rate … Read more

The Japan 225 CFD Index (a proxy of the Nikkei 225 futures) has staged the expected bullish move and rallied by 5.5% since our last publication on 6 August, cleared above its prior all-time high of 42,513 printed in July last year, and hit a fresh record high of 43,009 in today’s Asia session led … Read more

As the chart shows, the Nikkei 225 stock index (Japan 225 on FXOpen) rose today to the 43,000-point level, thereby: → surpassing its 2024 peak; → setting a new all-time high. Bullish sentiment has been driven by strong quarterly earnings reports from Japanese companies and expectations regarding the Bank of Japan’s monetary policy. Optimism was … Read more

The Australian dollar is lower on Tuesday. In the European session, AUD/USD is trading at 0.6494, down 0.29% on the day. RBA cuts rates to 3.60% The Reserve Bank of Australia lowered the cash rate by a quarter-point on Tuesday in a unanimous decision, bringing the cash rate to 3.60%. This is the lowest level … Read more

The British pound is in positive territory on Tuesday. In the European session, GBP/USD is trading at 1.3461, up 0.22% on the day. The pound has jumped 1.9% in August and touched a high of 1.3476 on Monday, its highest level since July 25. Job openings drop, wage growth steady The UK labor market continues … Read more