US inflation figures to attract attention – Danske Bank

US inflation figures will attract attention in the afternoon with the release of the PCE figure, explains the analysis team at Danske Bank.

Key Quotes

“The decline in PCE core inflation in the first half of this year has sparked some concern about lack of inflation pressure within the Fed. Nevertheless, the Fed has said quantitative tightening will begin 'relatively soon' and we expect it to be announced in September. The Fed getting ready to pull the trigger on quantitative tightening means USD liquidity could start to become scarce from Q4.”