Air Mata Market Strengthens US inflation data
The Currency Market is in the holding pattern on Tuesday before the US inflation data – it is important for the expectation of the Federal Reserve policy – with a carefulness that limits the acquisition of pounds after British work data and the loss of the Australian dollar.
Moderate reading at US price pressure can strengthen bets for reducing FED tariffs next month, which will increase after the soft salary data last week.
But if the signs arise that US President Donald Trump triggers inflation, it can pressure the central bank to survive, despite the higher blades. That in turn will trigger further tension with Trump, who has urged The Fed to cut tariffs.
The economist surveyed by Reuters hoped that CPI Core had increased 0.3%in July, pushing a higher annual level to 3%, and traders currently put the opportunity to cut interest rates of a quarter point on September 17 around 89%, and fully give a price of two slaughtering at the end of the year.
“The $ 1 million question for the market (IS) is CPI today important for Fed in September and so on,” said Kenneth Brugx, Head of FX Company Research and Rates on Societe Generale (OTC :).
He said he was given a market price, “This is a big demand for CPI today and the next month to challenge Dovish”.
Ahead of the data, due at 1230 GMT, the dollar rose 0.2% against Yen at 148.43, while the euro was slightly softer at $ 1,1609.
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Sterling is one of the larger drivers, up 0.2% on the dollar at $ 1,3460 after the data showing the British job market further weakened, although it was slower, while the growth of wages remained strong – the latter underlined why the Bank of England was so careful about cutting interest rates.
The amount should not cause the Bank of England to accelerate the speed of cutting tariffs. Boe cut the tariff only last week in 5-4 strict votes.
Sanjay Raja, Head of the British Economist at Deutsche Bank, said there was a “positive marginal” in the data and no one showed the easing of the labor market faster, but he added “We have not left the forest”.
He expects Boe to continue to loosen the policy gradually.
The Australian dollar took $ 0.6493, down 0.3%, after the decision of the Reserve Bank of Australia which was widely estimated to cut a tariff of a quarter of points. The central bank quotes the slowing of inflation and a more loose labor market, although careful about prospects for further easing.
“We still have the view that the cutting of follow -up in November is more likely than not, with cash rates to then stay at 3.35% for a long time,” said Adam Boyton, Australian Economic Chief at Anz, in a note.
The currency market mostly ignores Trump’s decision to extend the pause in higher rates in Chinese imports for 90 days, as expected widely.
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With the US and China who are trying to make an agreement that avoids three -digit import tariffs, a US official told Reuters that the Nvidia chip maker (:) and AMD (O 🙂 have agreed to allocate 15% of Chinese sales income to the US government, which aims to secure export licenses for semiconductors.
flat at 7,195 per dollar in offshore trade.
Cryptocurrency Bitcoin () is flat around $ 118,400, after rising as high as $ 122,308.25 on Monday, bringing it close to the peak of $ 123,153.22 from mid -July.
Source: Reuters
