Articles tagged with "inflation"

A rare surge in US-Japan yield spreads has failed to lift USD/JPY, but with bond yields still rising and the pair printing a bullish engulfing candle, reversal risk is rising.

It has not been an easy week for the Japanese yen. Over the last four trading sessions, USD/JPY has posted a move of only around 0.3%, reflecting a market that continues to lack clear direction and remains trapped in a phase of neutrality.

PCE may still matter to policymakers at the Fed, but for traders looking for a genuine volatility event, CPI has been the far more reliable release.

The last Core PCE before the Fed's September meeting will mark 65 straight months above the central bank's 2% target - will it be enough to push the FOMC toward a rate hike?

Speculative yen shorts are far less stretched, but the focus now shifts to US inflation. Another hot print could quickly revive Fed hike expectations and support USD/JPY.

The bear steepening in the Treasury markets, decision outsourcing to the bond market, three hawkish dissents, dollar weakness, and simultaneous drop in stocks and bonds are warning signs for new FOMC Chairman Warsh - volatility ahead?

Traders are viewing the meeting as dovish in the near-term, though perhaps reflecting a central bank that may be falling behind the curve in fighting inflation - what does it mean for the US dollar?

A week after a similarly below-expectation report from the US, Canadian inflation cooled more sharply than expected in June, easing concerns that the recent energy-driven increase was spreading across the broader economy. USD/CAD is in focus.

While hawkish hopes are perhaps too elevated, a surprising CPI report could still drive abnormal volatility in major markets given uncertainty around the FOMC’s near-term path under Kevin Warsh.

Traders and economists are projecting headline CPI at +0.5% m/m (4.2% y/y) and Core CPI at +0.3% m/m (2.9% y/y) - how will that impact the Fed and US Dollar?

US PPI came in FAR above expectations at 1.4% m/m, 6.0% y/y, with Core PPI also beating expectations - will the US Dollar play 'catch up' to Fed rate hike expectations?

We are now starting to see the real impact of oil spike on inflation data. Markets were surprised to see US producer inflation jumping to +6% y/y in April. I mean, what do you expect? But this was certainly hotter than analysts had feared and underscores stagflation concerns. Let’s see if markets will now hold onto the initial reaction we saw in the immediate response to the data, or will it be a similar story to the CPI release the day before, when the initial drop in stocks was later bought.