The US PCE Inflation indicator confirmed inflation was soft and opened the door for interest rate cuts, from the Federal Reserve, in September. The sacking of Federal Reserve member Cook also aids in that cause, as she was a consistent supporter of ‘Too Slow’ Powell and a hindrance to rate cuts. German inflation went the other way, rising, in an economy that has suffered a three-year-long recession. Europe is in big economic trouble. The US Dollar was soft, allowing the EUR to approach 1.1700, while the GBP regained 1.3500.The weaker reserve allowed the AUD to consolidate above 0.6500, while the NZD approaches 0.5900. This coming week will focus on inflation and growth, while the US will watch the series of Labour market reports, very closely.
