Dollar Still Struggles to Avoid Additional Losses

US yields don’t decline any further. The dollar still struggles to avoid additional losses (DXY 99.73, EUR/USD 1.122).

A Stellar Week in Response to Very Promising US Inflation Data

It's shaping up to be quite a relaxed end to the week, one in which we've seen stellar gains on the back of some very encouraging inflation data from the US.

Sunset Market Commentary

Market activity shifted into a lower gear today after an impressive bond market rally since end last week fired impressive gains across multiple assets categories. Compared to the (intraday) peak levels end last week, the US 2-y and 10-y yield respectively dropped from 5.12% to 4.68% and from 4.09% to 3.78%.

Will China's Q2 GDP Data be the Next Bull Catalyst in Markets?

While China is having another power battle in the artificial intelligence field against the US, economists are still hoping for the second biggest economy to bolster global growth as recession fears in the rest of the world persist. Monday’s Q2 GDP growth figures could bring some cheer to investors, likely showing the fastest expansion in two years.  

Week Ahead – UK Inflation, Earnings, Interest Rate Decisions Galore

UK inflation data on Wednesday is undoubtedly the one to watch next week. It seems we’re seeing progress on inflation everywhere except the UK at the moment. The headline is expected to fall back to 8.2% for June, with core staying at 7.1%. But both have surpassed expectations on numerous occasions recently as inflation has remained stubbornly high. Are better readings from the US and eurozone a sign of things to come for the UK, finally? Retail sales will also be released on Friday.

Weekly Economic & Financial Commentary: Downside Inflation Surprise Probably Not Enough to Stop the Fed

This week provided additional evidence that economy-wide price pressures are gradually easing. Both the headline and core CPI ticked up 0.2% each in June, the lowest monthly advances since early 2021. Core producer prices similarly posted their softest annual increase since February 2021. Although labor demand remains healthy, other indicators suggested that employers may be pulling back on hiring.

Forex and Cryptocurrencies Forecast

So, we can either congratulate (or, conversely, upset) everyone with the onset of a global process of dedollarization. As Bloomberg reports, after the inflation rate in the US approached 3.0%, which is not far off the Federal Reserve's target of 2.0%, it seems like a turning point is approaching for the US economy.

China Growth Disappoints – US Earnings in Focus

The Chinese economy grew 6.3% in Q2 and that’s faster than a 4.5% growth in Q1 but lower than the market estimate of 7.3%. Now don’t be blindsided by the strong look of these numbers, because the latest figures were distorted by a low base effect last year when Shanghai and other big cities were in lockdown and life in China was running at a very low speed. If we look at a seasonally adjusted basis, the Chinese economy grew by only 0.8%, slowing sharply from a 2.2% rise in Q1.

NZD/USD Coming Off Superb Week as US Dollar Beats a Retreat

The New Zealand dollar has started the week with considerable losses. In the European session, NZD/USD is trading at 0.6338, down 0.51%. This follows a superb week for the New Zealand dollar, which soared 2.58%.

Inflation to Determine the Size of the Next BoE Rate Hike

The focus this week is on Wednesday’s UK CPI release (06.00 GMT). With the next Bank of England meeting scheduled in two weeks, this report will probably determine the size of the expected rate hike. In the meantime, the pound continues to outperform the euro but a potential downside surprise on Wednesday could really clip its wings.