US PPI wholesale inflation data, eased more than expected, setting the table for tonight’s CPI inflation reading. US CPI inflation is expected to come in at 2.9%, so anything around this number, or lower, will ensure Fed rate cuts become almost a certainty. Chinese CPI inflation was negative and they have almost deflationary problems, easing monetary concerns. The EUR is now below 1.1700, to the downside, while the GBP holds above 1.3500.The likelihood of US rate cuts eased the reserve against commodity currencies, with the AUD consolidating above 0.6600, while the NZD trades up to 0.5950. All eyes are focused on the release of the US CPI inflation read later today.
