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S&P 500 forecast Hot PPI unlikely to be game changer for US stocks

US index futures dropped after the latest inflation data showed a completely different picture to the CPI print released on Tuesday, though it is far too early to change our S&P 500 forecast to bearish. Today’s PPI data revealed a surprise rise to 3.3% y/y for July which was much higher than 2.5% expected, and that raised concerns that the impact of tariffs on inflation are finally starting to show.

EUR/USD forecast: Hawkish Fed repricing should keep dollar in driving seat

The EUR/USD staged a mild bounce on Tuesday’s morning session after falling relatively sharply along with other FX majors on Monday. The slight recovery was initially likely driven by profit taking on long dollar positions given that the greenback was also weaker against other currencies. We saw a surprising weak PPI report which contributed to the dollar’s small pullback.

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