Scrap 6063 Aluminum Extru. Idx Futures Market News and Commentary
The dollar index (DXY00) on Friday fell slightly by -0.05% in lackluster trading. The dollar was undercut by Friday's -5.1 bp decline in the 10-year T-note yield to 4.190%, which followed the dovish US PCE deflator report, the Fed's preferred inflation measure.
Friday's PCE deflator report was close to expectations and supported the case for a FOMC rate cut in September. On a month-on-month basis, the June PCE deflator report of +0.1% m/m (headline) and +0.2% (core) was exactly in line with market expectations. On a year-on-year basis, the June PCE deflator of +2.5% y/y was in line with market expectations, fell from +2.6% in May, and matched the 3-1/4 year low of +2.5% posted earlier this year. The June core PCE deflator of +2.6% y/y was slightly stronger than expectations of +2.5% and was unchanged from May's 3-1/4 year low of +2.6%.
The fact that both the headline and core PCE deflators were at 3-1/4 year lows in June was a dovish factor for Fed policy. Also, the... Read more