"Producer prices are due later today, followed by Thursday's consumer price report, both seen as decisive in determining monetary policy decisions. Labour market revisions earlier this week reinforced the dovish backdrop. The Bureau of Labour Statistics said the economy likely created 911,000 fewer jobs in the 12 months through March. Combined with last week's payroll miss, the data underscored the slowdown in hiring that has already left investors fully pricing a cut at the September 16-17 meeting."
"Treasury yields were little changed, with the 10-year note near 4.08%, reflecting markets' wait-and-see stance ahead of the inflation test. Yields could react to upcoming inflation data. Softer-than-expected prints would bolster calls for aggressive easing and likely extend pressure on the currency and drag yields lower. Conversely, firmer inflation could provide temporary support. Politics continues to add to the clouded outlook. A court ruling temporarily blocked President Trump from removing Fed Governor Lisa Cook, prolonging an unprecedented legal battle over the central bank's independence."
Producer prices are due today and the consumer price report follows on Thursday, both seen as decisive for monetary policy. Recent Labour market revisions reduced estimated job creation by about 911,000 over the 12 months through March, compounding last week's payroll miss and reinforcing expectations for easing. Markets have fully priced a rate cut at the Federal Reserve's September 16-17 meeting. Treasury yields were little changed, with the 10-year near 4.08%, but yields and the dollar could move sharply depending on inflation prints. A court ruling blocking President Trump from removing Fed Governor Lisa Cook added political uncertainty that could weigh on US assets if perceived as undermining central bank independence.
Read at London Business News | Londonlovesbusiness.com
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