Finance

Consumer Prices Unchanged in June

Consumer Prices Unchanged in June

United States consumer prices were unchanged in June and retail sales fell for a second straight month, pointing to tame inflation and soft domestic demand that diminished prospects of a third interest rate increase from the Federal Reserve this year.

Headline inflation is also showing in decline after a steep rally, as shown in the 5-year historical chart for headline inflation - which includes energy and food inflation - below. That was below the 0.1% gain expected by economists.

The Consumer Price Index (CPI) measure of inflation is forecast to come in at 2.9% in June, according to consensus estimates, in line with May's figure but above April's reading of 2.7%.

Reaction was largely muted to a story by Politico that Trump is increasingly unlikely to nominate Yellen next year for a second term, and National Economic Council Director Gary Cohn is the leading candidate to succeed her. Manufacturing output rose 0.2%.

The University of MI is due to release its preliminary report on consumer sentiment in the month of July.

Additionally, the Commerce Department is scheduled to release its report on business inventories in the month of May.

The latest data is likely to trigger fresh doubts surrounding the inflation outlook and create renewed uncertainty surrounding potential further rate increases, although the Fed will see the steady rate of services-sector inflation as justifying their policy.

FED WATCH: Yellen rehashed her key message in her comments to Congress on Thursday, speaking of challenge posed by the dual risks of inflation: prices rising too slowly and prices accelerating too quickly.

There appears to be no sign of the downtrend in inflation slowing, much less reversing. "Future removals of accommodation should be done in a gradual and patient manner". Against the yen, the greenback rose.

The Fed's preferred measure of inflation has been slipping.   Andy Kiersz  Business Insider
The Fed's preferred measure of inflation has been slipping. Andy Kiersz Business Insider

EUR/USD is likely to find support at 1.1388 levels and now trading at 1.1465 levels.

On a month-on-month basis, the core CPI is expected to rise 0.2 percent after a 0.1 percent gain the previous month.

GBP/USD is supported in the range of 1.2952 levels and now trading at 1.3101 levels.

Final data from the Ministry of Economy, Trade and Industry showed that Japan's industrial production declined more than estimated in May. It rose as high as $1.3088 after a closely watched survey of US consumer sentiment came in worse than forecast at 1400 GMT and was also half a percent higher at 87.63 pence per euro.

The Fed has a 2 per cent inflation target and tracks a measure which is now at 1.4 per cent.

The trade surplus increased to a seasonally adjusted Euro 19.7 billion in May from Euro 18.6 billion in April.

Drugmaker AstraZeneca AZN.L continued Thursday's slide, down 1.6 percent due to uncertainty around reports that CEO Pascal Soriot was preparing to leave the company. Platinum and palladium advanced 1.5% and 0.6%, respectively.

USD/CAD is supported at 1.2614 levels and is trading at 1.2649 levels. WTI crude traded 0.67% higher on Friday morning at $46.40/bbl, after falling as low as $42.50/bbl just three weeks ago.

Liverpool join Chelsea in race to sign Gabonese striker Pierre-Emerick Aubameyang
But they are now having to explore alternative targets after Manchester United hijacked their bid for the Belgium global .


  • Facebook's New Camera Feature Lets You Create Your Own GIFs

    Facebook's New Camera Feature Lets You Create Your Own GIFs

    - Facebook has been building out the camera in its main app for a while now, and on Friday, July 14 it added a new GIF function. For lucky users who are part of the testing phase, the top portion of the app will display two modes: Normal and GIF.
    Clijsters gets crowd involved in hilarious Wimbledon moment

    Clijsters gets crowd involved in hilarious Wimbledon moment

    So the four-time Grand Slam victor ran back to grab an extra skirt that she carried in her bag and dressed the fan up. An unsuspecting spectator has made the memory of a lifetime after being invited on to the tennis court at Wimbledon .
    US Stocks Edge Higher In Early Trade

    US Stocks Edge Higher In Early Trade

    In economic data, USA producer prices unexpectedly rose last month, as higher service costs offset declining energy prices. Analysts estimate second-quarter earnings for the S&P 500 companies rose 8.1 percent from a year earlier.
  • One-off Test, Day 2 at Colombo

    One-off Test, Day 2 at Colombo

    Zimbabwe were 344/8 at stumps on the opening day of the first test against Sri Lanka at R Premadasa Stadium in Colombo on Friday. Herath ended a stubborn 74-run stand for the ninth wicket with Tiripano (27) mistiming a reverse sweep to get caught at slip.

    Ex-Soviet Counter Intelligence Officer Attended Trump Jr Meeting, NBC Says

    She said the Trump campaign would need to research it more and after that Mr Trump Jr lost interest , according to Mr Akhmetshin. Fast forward to this morning, America learns there was another person besides the Russian lawyer in the meeting.
    Multiple reports: Second person arrested in missing men case

    Multiple reports: Second person arrested in missing men case

    DiNardo, shackled and clad in an orange prison jumpsuit, said: "I'm sorry", as he was being escorted to a sheriff's van Friday. On Thursday, DiNardo's lawyer announced that his client had admitted to the killings and was cooperating with investigators.
  • ESPN, Disney XD To Broadcast Top Evo Games

    ESPN, Disney XD To Broadcast Top Evo Games

    The annual event, which is being held at Mandalay Bay, attracted 14,000 competitors past year and paid almost $300,000 in prizes. The block will include collaborative content from ESPN , Disney Digital Network and its maker creators, IGN, and others.
    Women's WC: New Zealand win toss, put India to bat

    Women's WC: New Zealand win toss, put India to bat

    If New Zealand win and Australia beat South Africa by a big margin, they could also move to the third spot. Download the News Nation Mobile App and stay connected with top stories from India and around the world.
    What Music Does Trump Like? Not Daft Punk, Apparently

    What Music Does Trump Like? Not Daft Punk, Apparently

    At the end of the performance, Mr Trump clapped and whistled while his French counterpart broke into a broad smile. Well, now we can add electronic music to the seemingly endless list of things that Trump has no knowledge of.
  • AAP backs opposition presidential candidate Meira Kumar

    AAP backs opposition presidential candidate Meira Kumar

    The meeting lasting for nearly an hour saw the BSP president assuring Kumar of her party's full support to her candidature. Kumar said her maternal uncle belonged to Kanpur and she always felt happy whenever she came to Uttar Pradesh.
    Salah scores on debut but Liverpool held at Wigan

    Salah scores on debut but Liverpool held at Wigan

    Klopp was also asked on the status of any further incomings to the club, but said he was not willing to discuss potential signings.

    The Incredibles 2 Will Begin "A Minute" After Original Movie Ended

    Technically, Vanellope von Schweetz has always been a Disney princess - it's actually a huge plot point in Wreck-It Ralph. Reilly ) and Valellope exploring the internet in hopes of finding an essential replacement part for their arcade game.