A mixed end to a week dominated by inflation and growth. US CPI inflation was up, but in line with expectations, green-lighting the Fed to cut rates this coming week. This week will be dominated by speculation over the Fed’s rate cut, the extent and impact. The pressure is on for a 50 basis point cut, but the Fed President ‘too late’ Powell, is likely to only cut by 25 bp’s. Also coming this week is inflation readings from Europe and the UK, which may be interesting, especially the train-wreck, that is the UK economy. The EUR will begin the week trading above 1.1700, while the GBP will look to regain 1.3600, ahead of the UK CPI reading.Commodity currencies will begin the week banking gains, with the AUD looking to regain 0.6650, while the NZD trades around 0.5950. Attention will be on the Fed, but there will be a lot of economic data from Australasia, including Australian Employment, NZ GDP growth, trade and inflation.
