Economic releases today include Personal Spending data and Core PCE deflator.
Treasuries are set for their longest monthly winning streak in three years. The rally started at the beginning of April, extending the year’s gain to nearly 3% as investors plan for lower US borrowing costs.
Euro-area August CPI data came out today, rising by 2.2% y/y and staying in line with forecasts. Headline and core inflation slowed in August whereas services inflation rose 4.2% y/y, up from 4% in July. Although services inflation is an important indicator for the ECB, the implied odds of a 25bps reduction at their September meeting are near 100%.
GBPUSD gained 0.2% to 1.3192. EURGBP fell by 0.1% to 0.8403.
The Nationwide House Price Survey was released today, where its index of house prices declined 0.2% for August, the first drop since April. Economists expected a 0.2% increase, which was an unexpected result and shows that affordability is still stretched regardless of the BoE easing borrowing costs. However, the overall outlook for the housing market this year remains positive.
