A hotter than expected PPI number, out in the US overnight, showed wholesale prices hotter than expected. This dampened enthusiasm for rate cuts from the Fed, hinting that inflation may not be completely under control. Equities hit a minor speed bump and the US Dollar rebounded strongly. The EUR slumped to 1.1630, while the GBP dropped back to 1.3520, despite stronger than expected GDP growth data. The European markets progressed well, boosted by the prospect of the Alaska Peace Summit, between the US and Russia. The potential to end to the long and destructive war in the Ukraine, may well be in final quarter.The rebound in the reserve hit the commodity currencies, with the AUD surrendering 0.6500, while the NZD looks to test the downside of 0.5900. Markets will be watching Japanese GDP growth and later US Retail Sales, but most attention will be on the Alaskan Peace Summit.
