CPI is expected to reflect a sharp fall in headline prices in June year. The consensus call is for a drop to 3.1%, with prices rising 0.3% in the month. But a number of Wall St banks are looking for a milder 0.2%-ish rise in headline inflation that will pin inflation back to 3%.
Slowing inflation – and thoughts of perhaps a 2-handle on headline CPI in the next few months – will encourage market expectations that the Fed may have little more work to do on monetary policy after the July meeting and weigh on the USD generally. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.