US: PCE headline and core inflation figures in focus – Danske Bank

In the US, the focus is on the PCE headline and core inflation figures for June, which Danske Bank estimates to be muted.

Key Quotes

“We still think risks are skewed towards the Fed pausing its hiking cycle due to continuing low inflation, which may not be just 'transitory' as the Fed claims. Markets will also watch out for further insights into the Fed's monetary policy stance, as the Fed's Mester and Williams (both FOMC voting members) will speak today.”

“In the US, we will get the ISM manufacturing index, which we estimate moderated slightly in July to 55.5 from 57.8, in line with the Markit PMI.”