US consumer confidence is weak. The Fed is on track to cut in September. That’s weakening the US dollar. And New Zealand gets fresh inflation data today that’s expected to give room for its Reserve Bank to cut next month.
In our deep dive interview, ANZ Senior Rates Strategist Jack Chambers talks about the importance of rising long bond yields.
5 things to know in 5 minutes:
US consumer confidence figures out on Friday night were solid at a headline level, but ANZ Head of G3 Economics Brian Martin says the outlook was soft.
Brian says the survey shows underlying US inflation pressures are soft enough for the Fed to cut in September.
He says this week will be quiet because Fed speakers go into a blackout period where they don’t speak until next week’s Fed decision, which is still expected to be a hold, ahead of September’s cut.
Talk of soft inflation and Fed cuts is keeping downward pressure on the US dollar, says ANZ FX Strategist Felix Ryan.
ANZ Senior Economist Miles Workman previews New Zealand’s June quarter CPI inflation figures due later today.
Cheers,
Bernard.
PS: Catch you tomorrow with detail and analysis from those New Zealand inflation figures.
