Today’s U.S. CPI report for July was in-line with estimates: monthly Core CPI (excludes food and energy) was 0.2%, matching June’s 0.2% and the smallest back-to-back increase in two years; over the last 12 months full CPI was 3.2%, the first uptick since June 2022. The largest contributor to higher YoY CPI was for housing which accounted for 90% of the increase, with motor vehicle insurance also higher. So there’s something for everyone, a glass half full/half empty report.
The global equity indexes are all showing gains today, Nasdaq +0.82% and S&P500 +0.66%.
Treasury yields are lower in all tenors with the biggest declines in the 3- 5-year region, -0.04%.
USD is lower vs. the G10/majors, losing ground primarily vs. SEK (-0.60%), AUD (-0.55%), MXN (-0.54%), EUR (-0.36%), NZD (-0.33%), GBP (-0.21%), and CAD (-0.13%). The lone USD gain in the G10 is +0.35% vs. JPY.
The U.S. Dollar Index is -0.25% after recovering from a 0.69% decline earlier in the trading session.
Market attention now turns to tomorrow’s PPI data (producer prices) for July.
