Bank of Montreal on the US inflation data. Fist, the TL;DR key takeaway:
- sets the Fed up well to begin cutting in September
More (in brief):
- The
net of the data reinforces the dovish messaging from Powell and offers
confirmation that the Fed’s tighter policy stance is weighing on
consumer price inflation. - Initial Jobless Claims … Continuing Claims were also better-than-expected
- Treasuries
are stronger in the wake of the release and we suspect that the net of
this week’s bond bullish events will set the tone for the coming weeks
and embolden dip-buyers as the cooling inflation data sets the Fed up
well to begin cutting in September. 10-year yields have slipped to
4.173% — setting a new local low that will be resistance in the event
of follow-through strength.
This article was written by Eamonn Sheridan at www.forexlive.com.
