News

US July PPI Below Expectations as Producer Inflation Cools Significantly, Easing Fed Rate Hike Pressure

TradingKey - Data released by the U.S. Bureau of Labor Statistics on Thursday showed that the U.S. Producer Price Index (PPI) for July was flat month-over-month, lower than market expectations of a 0.

Source  Tradingkey1786626214
US PPI comes in softer than expected, confirms easing inflation pressures

Producer inflation in the United States (US) cools more than expected in July, adding to evidence that inflationary pressures are gradually easing after Wednesday's Consumer Price Index (CPI) data.

Source  Fxstreet1786624995
Bank of Canada: Gradual tightening path into 2027 – NBC

National Bank of Canada's (NBC) Taylor Schleich and Ethan Currie reaffirm their Bank of Canada (BoC) rate call, arguing that despite stronger Canadian labour data and robust Q2 GDP, accumulated slack and data lags should delay tightening.

Source  Fxstreet1786624755
US Initial Jobless Claims increased to 209K last week

According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance rose to 209K for the week ending August 8.

Source  Fxstreet1786624651
Indian Rupee: Benign inflation reinforces RBI pause – DBS

DBS Group Research economist Radhika Rao analyzes India’s July inflation data and its implications for the Reserve Bank of India. She notes that benign core inflation and limited spillovers from external shocks support a continued RBI policy pause.

Source  Fxstreet1786624154
Federal Reserve: Gradual easing path – UOB

Alvin Liew of UOB outlines expectations for the Federal Funds Rate following the July US CPI release. Market pricing for a September hike has fallen, and UOB’s base case is an extended pause through 2026.

Source  Fxstreet1786621922
European Central Bank: Independence risks rise with debt – Commerzbank

Commerzbank’s Dr. Marco Wagner assesses how political pressure threatens the European Central Bank’s (ECB) independence using a Central Bank Pressure Index based on AI analysis of politicians’ statements.

Source  Fxstreet1786621348
Riksbank: Rate hike risks rise – Nomura

Nomura strategists expects the Riksbank to keep its policy rate at 1.75% in August, with no change through 2026.

Source  Fxstreet1786620770
Norwegian Krone: Norges Bank softens hawkish stance – TD Securities

TD Securities’ Norges Bank analysis notes the policy rate was left unchanged at 4.25% in August, with a less hawkish tone than in June.

Source  Fxstreet1786619350
Economists agree: ECB to hike interest rates by 25 bps to 2.5% in September - Reuters

According to a Reuters poll, the European Central Bank (ECB) will hike its deposit rates by 25 basis points (bps) to 2.50% in September, said 57 of 69 economists.

Source  Fxstreet1786616676
US Dollar: Inflation outlook and Fed path – UOB

UOB’s Alvin Liew assesses United States (US) inflation and Federal Reserve (Fed) policy after the July Consumer Price Index (CPI) report. Liew notes headline and core CPI remain above the Fed’s 2% target but sees inflation gradually easing, with headline CPI averaging 3.5% and core 2.8% in 2026.

Source  Fxstreet1786612780
Canadian Dollar: Recovery not just about Oil – Commerzbank

Commerzbank’s Michael Pfister argues Canada’s recent economic improvement is not solely driven by higher Oil and gas prices linked to the Iran conflict.

Source  Fxstreet1786610937
Euro advances against Canadian Dollar amid ECB hawkish stance, lower oil prices

EUR/CAD halts its six-day losing streak, trading around 1.6080 during the European hours on Thursday. The currency cross gains ground as the Euro (EUR) receives support as the macroeconomic picture in the Eurozone continues to support the European Central Bank's (ECB) hawkish stance.

Source  Fxstreet1786610593
Indian Rupee: RBI seen delaying rate hikes – MUFG

Michael Wan at MUFG reports that India’s July Consumer Price Index (CPI) rose to 4.45% year-on-year, slightly below consensus but above June’s 4.38%, driven mainly by higher food prices.

Source  Fxstreet1786609716
Swiss Franc: Soft profile sustained on SNB stance – OCBC

OCBC’s Sim Moh Siong and Christopher Wong highlight that the Swiss Franc (CHF) has weakened toward their year-end EUR/CHF target of 0.94, making it a preferred funding currency for carry trades.

Source  Fxstreet1786608020
Norwegian Krone: Dovish risks but bullish view against Euro – ING

Francesco Pesole at ING sees some downside risks for the Norwegian Krone from Norges Bank’s meeting, as benign CPI‑ATE prints could tilt communication slightly less hawkish. He still expects rates to stay at 4.25% today and another hike later this year, but is less convinced about multiple moves.

Source  Fxstreet1786607523
Russian Ruble: Trade boost from Oil seen fading – Commerzbank

Commerzbank’s Tatha Ghose reports Russia’s June merchandise trade surplus rose to USD 12.5bn, up over 50% year-on-year, as higher Oil prices and improved Urals pricing supported exports.

Source  Fxstreet1786607177
Indonesian Rupiah remains subdued as safe-haven demand lifts US Dollar

USD/IDR gains ground for the third consecutive day, trading around 17,920 during the early European hours on Thursday. The pair appreciates as the US Dollar (USD) recovers its daily losses amid escalating geopolitical tensions between the US and Iran.

Source  Fxstreet1786605640
Equities: AI rally and CPI relief lift US stocks – Deutsche Bank

Deutsche Bank strategists highlight that the S&P 500 closed just below its record high as US CPI data reduced urgency for further Federal Reserve hikes. Front-end Treasuries rallied and semiconductor strength supported equities, while volatility fell to its lowest level since January.

Source  Fxstreet1786604278
Asian stocks rise on soft US CPI, AI earnings rally

Asian stocks mostly remain stronger, bolstered by softer US inflation data that reinforced expectations for a more accommodative Federal Reserve (Fed) policy. US headline CPI rose 3.4% year-over-year in July, down slightly from 3.5% in the previous month.

Source  Fxstreet1786593107
RBNZ Survey: NZ two-year inflation expectations cool down to 2.34% QoQ in Q3 2026

New Zealand's (NZ) inflation expectations ease on a two-year frame in the third quarter of 2026, the Reserve Bank of New Zealand’s (RBNZ) latest monetary conditions survey showed on Wednesday.

Source  Fxstreet1786590537
British Pound posts modest gains to near 1.3500 ahead of UK GDP data

The GBP/USD pair edges slightly higher to near 1.3500 during the early Asian trading hours on Thursday. The US Dollar (USD) softens against the British Pound (GBP) on a tame reading of the US inflation report.

Source  Fxstreet1786585492

Singapore Gross Domestic Product (QoQ) climbed from previous 1.1% to 1.4% in 2Q

Source  Fxstreet1786582676
RBA's Kent: Cash rate hikes are achieving their intended impact

Reserve Bank of Australia (RBA) Assistant Governor Chris Kent  said on Thursday that interest rate hikes are producing the expected effect. Kent added that further rate increases possible if risks emerge.

Source  Fxstreet1786581692

Singapore Gross Domestic Product (YoY): 5.9% (2Q) vs 5.7%

Source  Fxstreet1786579190
Iran says no progress on interim peace deal with US — Reuters

The United States (US) and Iran remain at ​loggerheads over efforts to agree a permanent end to the war in the Middle East, Reuters reported on Wednesday.

Source  Fxstreet1786578394
Indonesia: BI succession supports Rupiah stability – DBS

DBS Group Research’s Radhika Rao reports that Indonesia’s onshore markets welcomed President Prabowo’s nomination of Deputy Governor Destry Damayanti as the next Bank Indonesia Governor.

Source  Fxstreet1786574220
Singapore Dollar: Upside risk builds against US Dollar – UOB

UOB’s Quek Ser Leang and Lee Sue Ann note that USD/SGD closed little changed around 1.2800, with the S$NEER trading 1.7% above its mid-point and implying a 1.2760–1.2822 range.

Source  Fxstreet1786569120
Commodity FX: Growth constraints cap carry – BNY

BNY’s Geoff Yu notes that a less hawkish Fed has weakened the Dollar but failed to spark a sustained bid in commodity FX such as Norwegian Krone (NOK), Australian Dollar (AUD) and Emerging Markets (EM) currencies Chilean Peso (CLP), South African Rand (ZAR) and Brazilian Real (BRL).

Source  Fxstreet1786565171
Forex Today: US Dollar firms ahead of a packed session

The US Dollar (USD) has extended its recovery on Wednesday following a Consumer Price Index (CPI) report that printed in line with forecasts. The US Dollar Index (DXY) has pushed back above the 100.00 mark, and the bid has broadened out against most majors heading into a data-heavy Thursday.

Source  Fxstreet1786562919
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