In news today, Bank of England’s Taylor expressed concern over increasing downside risks to the economy, driven by global developments such as a potential trade war, which he said would be negative for growth. He argued that higher inflation is not primarily the result of demand or supply pressures, but rather due to one-time factors like tax hikes and administered price changes. By framing inflation as transitory, Taylor suggests there may be room for further BoE rate cuts as inflation eases.ECB Executive Board member Fabio Panetta stated that while there is reduced room to cut interest rates further, the Eurozone’s macroeconomic outlook remains weak, with growing risks from trade tensions. He emphasized that future monetary policy decisions should be made on a case-by-case basis, guided by incoming data, inflation trends, and growth projections. Panetta highlighted the importance of maintaining a pragmatic and flexible stance, particularly by closely monitoring liquidity conditions. He noted that disinflation is nearly complete and has not caused major damage to the economy so far. However, he warned that the outcome of ongoing trade negotiations remains uncertain and could have a significant impact on Europe, with tariff-exposed sectors already experiencing falling confidence and weakening expectations for orders and employment.
Germany’s headline inflation (HICP) rose 2.1% y/y, slightly above the 2.0% forecast but down from 2.2% in April. On a monthly basis, CPI increased 0.2%, beating expectations of 0.1%, though slower than April’s 0.5% rise. Core CPI held steady at 2.9% y/y. While the data came in marginally above forecasts, it’s not expected to shift the ECB’s policy stance at this point.
Here are the key scheduled releases along with their forecasts and previous readings.
8:30am – US Core PCE Price Index m/m: Forecast 0.1%, Previous 0.0%. YoY Core 2.5% vs 2.6% last month. Headline MoM is est 0.1% and the YoY 2.2%
8:30am – US Personal Income m/m: Forecast 0.3%, Previous 0.5%
8:30am – US Preliminary Wholesale Inventories m/m: Forecast 0.4%, Previous 0.5%
10:00am – US Revised UoM 1-yr Inflation Expectations: Preliminary 7.3%, Last month 6.5%
12:20pm – US FOMC Member Bostic Speaks
US stocka are little changed as implied by the futures:
Dow industrial averaget -37.22 pointsS&P index futures are implying -3.92 pointsNasdaq index -4.20 pointsIn the US debt market to start the US session
2 year yield 3.9525%, -1.4 basis points5-year yield 3.987%, -1.0 basis points10-year yield 4.414%, -1.0 basis points30 year yield 4.920%, -0.3 basis points This article was written by Greg Michalowski at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( The USD is mixed vs the 3 major currency pairs with prices near MA levels )
Also on site :