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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Free AccessLofty German Regional Inflation Prompts Renewed Risk-Off
- German regional CPI data has unsettled risk sentiment further this morning, with just over 2/3 of regions having reported so far. The regional data - and in particular Bavaria - are posing upside risks to the national reading later today, and has prompted renewed core bond sales and some resilience in the EUR.
- Nonetheless, the USD is rallying against all others, partially reversing the rare downtick in the USD Index posted yesterday. Wednesday's high at 114.778 remains the cycle high, and EUR/USD's recovery off the day's lows may keep that mark out of reach for now.
- Further evidence of unsettled markets in equity space, with core indices off 1.5-2.0% in Europe. High beta and growth proxy currencies including the NOK are therefore suitably lower, putting EUR/NOK again within range of key resistance and the bull trigger at the mid-June highs of 10.5402.
- Focus looking ahead turns to the national German CPI print as well as Canadian monthly GDP, the weekly US jobless claims data as well as the tertiary Q2 GDP from the US.
- Central bank speakers include no fewer than 16 scheduled ECB appearances (a handful of governing council members appear more than once) as well as speeches from BoE's Pill, Ramsden, Tenreyro and Fed's Bullard, Mester and Daly.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.