Live Coverage: CPI inflation misses all estimates, Gold and stocks jump, US Dollar dives

US
core
CPI
missed
estimates
with
0.1%
MoM
and
3.3%
YoY.
Headline
data
slipped
as
well.
Gold
and
stocks
are
partying,
the
US
Dollar
is
down.
Chances
of
a
rate
cut
in
September
have
substantially
increased.
Live
coverage

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Why
CPI
inflation
matters
for
markets

Will
the
CPI
report
to
officials
at
the
Federal
Reserve
(Fed)
the
confidence
they
need
to
cut
interest
rates?
That
is
what
markets
hope
for,
as
the
US
economy
slows
down.
Bonds
point
to
the
first
cut
coming
in
September, 

The
most
important
figure
is
core
CPI
MoM,
which
excludes
volatile
energy
and
food
products
on
which
the
Fed
has
little
impact.
Any
change
of
0.1%
matters.

A
0.1%
read
would
boost
stocks
and
Gold,
while
weighing
on
the
US
Dollar.
A
hot
0.3%
print
would
depress
the
precious
metal
and
equities,
lifting
the
Greenback. 

A
0.2%
outcome
is
expected,
and
that
would
still
be
a
positive
development.
It
would
reflect
an
annualized
rise
of
roughly
2.5%,
close
to
the
Fed’s
2%
target.
The
YoY
figure
is
still
above
 3%. 

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