The US inflation data for July was disappointing as data showed that consumer prices rose 0.1% on the month. This was below the forecasts of a 0.2% increase. However, on a year over year basis, consumer prices were seen rising 1.7% in July. This is slightly higher than June’s 1.6%.
In the backdrop, the US – North Korea narrative continues to be the main theme. Investors continued to scale back their risky bets, as a result sending the safe haven currencies and assets higher. However, the markets were seen opening on an optimistic note earlier today.
Earlier in the day, Japan’s GDP data showed a 1.0% increase in economic activity on a quarterly basis. This was stronger than the forecasts of a 0.6% increase that was penciled in by economists. On a year over year basis, Japan’s GDP has advanced 4.0%, beating estimates of a 2.5% increase and accelerated from the 1.5% increase registered during the first quarter.
Looking ahead, the economic calendar is light today with only the Eurozone industrial production numbers coming up. Forecasts point to a 0.4% decline.
