NY Open – One step closer
USD trades flat and USTs are bull steepening, though activity is subdued as we get closer to US CPI. USDCNH briefly rallied after the largest 1d increase in the PBoC fix for a month, which has since faded. A slight beat in UK wage data alongside BoE chief economist Pill confirming the intent to cut keeps June cut pricing high ~15bps, GBP recovered from early losses. Australia budget returns to deficit, increasing hawkish risks for RBA. Germany ZEW current assessment sees the largest MoM increase since April 2023.
Monitor the components rather than the expected headline acceleration in US PPI at 08:30 EDT (Citi e. 0.3% MoM for Final Demand). Fed’s Cook speaks at 09:10 EDT, followed by Fed Chair Powell and ECB’s Knot feature at an event with Q&A from 10:00. US equity futures trade broadly flat – consumer staple HD reports today. BRL markets watch BCB minutes shortly at 07:00 EDT. COP markets return from local holiday.
