Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3820-1.4070
Euro 1.5960 -1.6210
Sterling 1.8690 -1.8940
WTI Oil (opening level) $81.47
The CAD/USD is opening at 1.3940 ( 0.7174 )
Headlines
· US inflation slowed to 3.4% y/y in July from 3.5% as expected, easing Fed rate-hike bets, as energy pressures eased. Headline CPI rose 0.1% m/m, with shelter and food both up 0.1%, while core CPI increased 0.2% m/m and 2.5% y/y (from 2.6%), all in line with expectations.
· Japan’s Prime Minister Takaichi said that her government supports a near-term BoJ rate hike, according to unnamed sources cited by Bloomberg.
· Japan’s producer prices rose 7.2% y/y in July, slightly below 7.3% in June and 7.4% expected. On the month, prices edged up 0.1% after a revised 0.5% gain, the weakest increase in five months.
· Germany’s inflation accelerated to 2.8% y/y in July from 2.3%, driven by an 8.3% jump in energy and higher motor fuel costs after tax relief ended. Services inflation eased to 2.9%, food stayed at 0.4%, core dipped to 2.4%, and CPI rose 0.8% m/m; EU-harmonized inflation also reached 2.8%.
Key Points
· Macro: US inflation cooled to 3.4% and left the rate debate broadly where it stood
· Equities: Chipmakers carried a benign inflation print while Cisco's beat-and-raise was faded after hours
· Volatility: Event premium drained from the front of the volatility curve while longer-dated cover barely moved
· Digital Assets: Miners outran a quiet spot tape as attention turned to Friday's SEC vote
· Commodities: Corn jumps on yield cut as hot weather bites, while gold and oil take a breather
· Fixed Income: US long-dated yields remained near cycle highs, short-dated yield dipped slightly after the US CPI release.
· Currencies: USD edges higher after in-line CPI data. EURCHF hits new high for the year on weak CHF. SEK sharply lower.