- US May CPI 3.3% y/y versus 3.4% expected
- Federal Reserve rate decision: Rates unchanged and dot plot shows one cut this year
- Powell opening statement: Inflation has eased substantially but is still too high
- Powell Q&A: Regardless of dots, everyone at FOMC would say they're 'very data dependent'
- A word-by-word comparison of the May FOMC statement to the June FOMC statement.
- Bank of Japan to weight cuts to gov't bond purchases- report
- EIA weekly US oil inventories +3730K vs -1025K expected
Markets:
- Gold up $3 to $2319
- US 10-year yields down 7 bps to 4.33%
- WTI crude up 46-cents to $82.39
- S&P 500 up 0.8% to record high
- AUD leads, USD lags
Today's session offered a pair of surprises. The big one came early in the day as CPI undershot all expectations, leading to a sharp drop in the dollar. Core CPI was +0.16% unrounded compared to +0.3% expected and many of the details (aside from shelter) were soft. That led to broad US dollar selling, including a 150 pip drop in USD/JPY and big gains in AUD and NZD. Stocks loved the news and jumped to record highs as Apple gained more than 12% in the past two days.
