The US S&P rose to further record highs, as markets brush off the fears of an energy induced, inflation crisis. The US PPI, the wholesale price inflation measure, came in flat(0.0%). This was lower than expected and confirms inflation remains firmly under control, as did the CPI number released the day before. This takes all pressure off the Federal Reserve, allowing them to hold rates and perhaps consider future rare cuts. This did little to move the US Dollar, with the EUR trading 1.1530, while the GBP traded below 1.3500.The settled reserve allowed commodity currencies to stabilise, with the AUD trading above 0.7050, while the NZD trades around 0.5850. The RBNZ released their ‘inflation gauge’, which reported inflation was softening, which is a relief to the Central Bank. Markets will be looking for guidance and direction, towards European GDP growth and US Retail Sales, set to be released tonight.
