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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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

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.

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.

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.

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).

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.