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Fed officials see inflation falling, signal no rush to cut rates

Inflation Data from Eurozone and US Takes Center Stage

Dollar continues its struggle to find direction, and stay in familiar range against most major currencies except against Swiss Franc. Markets shift their focus to the upcoming release of April US PCE data for guidance. Currently Fed fund futures are indicating a 50/50 chance of a rate cut by September. Recent comments from Fed officials hinted at the unlikelihood of further rate hikes. However, Fed's outlook and market sentiment could shift dramatically if today's data suggests re-acceleration of inflation. But absent significant surprises, attention is likely to turn to next week's employment figures.

Focus for Global Trading on EMU and US Inflation Data Series

Later today, the focus for global trading is on the EMU and US inflation data series. EMU headline inflation is expected to slow from 0.6% M/M to 0.2% M/M. However, due to unfavourable base effects, the Y/Y measure likely reaccelerated to 2.5% from 2.4%. Core inflation is expected unchanged at 2.7%. In the US, the report on the April personal income and spending also contains the (core) PCE deflators.

US stocks climb higher after stable PCE inflation data; Dell slumps By Investing com

US stocks climb higher after stable PCE inflation data; Dell slumps By Investing com
investing.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from investing.com Daily Mail and Mail on Sunday newspapers.

Fed Likely to Seek More Evidence Despite Cooler Inflation Data

Fed Likely to Seek More Evidence Despite Cooler Inflation Data
bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.

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