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.
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