President Donald Trump criticized the interest-rate polices of the Federal Reserve under Chair Jerome Powell, saying, “I don’t like all of this work that we’re putting into the economy and then I see rates going up.” The dollar fell immediately after the comments were released, trading 0.5% below yesterday’s high this morning.
The Canadian Consumer Price Index rose 2.5% on a year-over-year basis in June, following a 2.2% increase in May. This is the largest year-over-year increase in the CPI since February 2012. This month’s year-over-year CPI increase follows a year of gradual acceleration in consumer price inflation, from a recent low of 1.0% year over year in June 2017. The loonie extends gains against the US dollar.
The yuan recovered from a steep decline overnight amid signs authorities were seeking to halt the plunge that has hit Chinese markets this week. Hopes of currency stabilization have given a boost to battered base metal prices, with copper rebounding as much as 0.8% this morning.
Italian bonds suffered a selloff this morning after reports emerged of a rift between the leaders of the populist coalition government and Finance Minister Giovanni Tria, leading to speculation he may be forced to step down.
The UK’s new Brexit secretary, Dominic Raab, will meet with chief European Union negotiator, Michel Barnier, in Brussels later today. Negotiations over Britain’s path out of the European Union remain stalled as Prime Minister Theresa May continues to contend with objectors inside her own party.