From Marc Chandler at Bannockburn Global Forex:
Overview: The on-again, off-again US tariffs are back on, but the judicial process is not over. On top of that, US Treasury Secretary Bessent acknowledged what many have suspected: US-Chinese talks have stalled. The dollar, which was offered yesterday, has come back bid today. It is up against nearly all the G10 currencies. The yen is the exception, arguably helped by the firmer Tokyo CPI. The week may also be remembered for the snapping of the sharp jump in Japanese long-term yields. The 30-year yield posted its first weekly loss in five weeks, with an eight basis point pullback. The yield of the 40-year bond fell (43 bp) to post its first decline in eight weeks. The dollar is firmer against all the G10 currencies on the week but is only higher against the Canadian dollar and Japanese yen as we close out the month.
Equities in the Asia Pacific region were mostly lower. Australia and New Zealand were notable exceptions. Europe's Stoxx 600 is about 0.6% better after falling around 0.8% in the previous two sessions. US index futures are nursing small losses. Benchmark 10-year yields are 1-2 bp higher in Europe, and the 10-year US Treasury yield is up almost a basis point to near 4.43%. It is virtually flat this week coming into today. Yesterday's recovery in gold stall and it is trading inside the upper end of Thursday's range. It is struggling to sustain the foothold above $3300. It is off about 1.8% on the week, which leaves it up fractionally for the month, its fifth consecutive monthly gain. July WTI is firm in European turnover, near session highs (~$61.45). It settled near $62.35 a week ago and settled last month close to $57.60.
USD: The Dollar Index's price action was poor yesterday but there has been no follow-through selling today....
....MUCH MORE
As part of his look at today's inflation release he comments:
The Federal Reserve targets the headline PCE deflator, but the thunder is stolen by the CPI and PPI. The PCE rarely surprises outside of a rounding adjustment....
