DXY got spanked last night:
AUD popped but dropped:
North Asia took off:
Oil and gold up:
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Base metals sold on deflation:
Miners meh:
EM rocket:
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Junk a bit:
With US yields finally break the uptrend?
Stocks sold the first cut:
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JPM wraps the US CPI:
Sticky inflation is coming unglued
The Jue CPI report was very benign. The headline figure fell 0.06% (expected up 0.1%) and the core figure was up only 0.06%.
Within the core component, the long-awaited slowing of both tenant’s’ and owners’ equivalent rental inflation took place last month as the monthly increases skidded to low-side 0.3% increases after running 0.4% increases much of the prior six months.
Core services ex-rents slipped 0.05%, the second consecutive decline.
Core goods prices slipped 0.1%.
Today’s report is, to use Powell’s words, “good news” and we now think this paves the way for the first cut in September followed by quarterly cuts after that.
I think we cut faster. Inflation is cooked and a growth scare is next.
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AUD up for now but high-beta means any growth issues prevent it from running away.