Stocks Stabilize, US CPI Next

Forex News

The market sentiment improved, but the threat of trade war is present. Donald Trump claimed he will impose another 10% tariffs on 200 billion dollars of Chinese goods, including food products, tobacco, chemicals, coal, steel and aluminum. China responded it would retaliate.

Today’s focus is inflation data from the US. Investors hope the report will help give some hints over the Fed’s rate path and overall economic outlook, and as we know, the majority expects 2 more rate hikes in 2018. The CPI is projected to show prices growing 2.9% in June from 2017. Core inflation is expected to lift 2.3%, which exceeds Fed 2% inflation aim. Another important is European Central Bank’s accounts of its June policy meeting. The release is likely to be dovish.