US dollar index makes up gains after Friday’s tumble

Key Movers

The China Consumer Price Index (CPI) for June reported no change year-over-year versus the expected 0.2% increase. The Producer Price Index (PPI) dipped -5.4% year-over-year in contrast to the expected -5% dip. Both figures indicate weak demand in China, both dropping from the May figures.

In July, the sentix economic index for the Eurozone fell for the third time in a row. At -22.5 points, the figure indicates a negative outlook for Euro economic conditions for the next six months. It is at its lowest level since November 2022.

On Sunday, the Bank of England’s (BoE) Governor Andrew Bailey rejected the call to raise the inflation target higher than 2%, warning that changing the goal could damage the bank’s credibility.

The CAD is slightly down against the USD at the time of writing to the 1.32964 level. The CAD looks on course for gains as the Bank of Canada (BoC) is expected to hike rates again this month. The BoC is expected to announce a second consecutive quarter-point interest rate hike on Wednesday after a month of economic data revealed resilient growth and a tight labor market. The total monthly value of building permits in Canada was released, showing an increase of 10.5% in May to $10.5 billion. The total monthly value of residential permits rose 8.5% to $6.8 billion in May, with Ontario contributing to 45.8% of Canada’s residential permit values. In oil news, crude oil prices are dropping slightly, selling at $73.25 a barrel. Expected crude supply cuts from Saudi Arabia and Russia limited losses.