US inflation data due on Friday – upside risks

BMO on the data from the US on Thursday inflation data for Q2. In brief:

• Second quarter real GDP surprised on the upside at 2.8%
• while inflation slowed during Q2 to 2.9%, it was modestly
  above expectations for a 2.7% print. As a result, investors revisited
  expectations for June’s core-PCE figures that will be released Friday
  morning, and although the consensus remains +0.2%, the assumption is
  that depending on the trajectory of revisions in April/May, there could
  be upside risks with which to contend as the market absorbs the latest
  installment of the Fed’s favored inflation measure.
• In short, growth
  remains surprisingly strong and realized inflation might be edging back
  toward the Fed’s objectives – but it doesn’t seem to be in any hurry.

Due at 0830 US Eastern time:

This article was written by Eamonn Sheridan at www.forexlive.com.