USD

After an initial selloff following yesterday's US CPI release, the Dollar reversed course and closed the day in the green. Today, the Greenback is back in the green this morning following this morning's US PPI report and looking for its fourth-consecutive weekly gain.

US producer prices increased by 0.3% in July, the largest monthly rise since January and slightly above market expectations. Services prices went up 0.5%, led by portfolio management and transportation. In comparison, goods prices rose by 0.1%, with food and vehicle prices being the most notable contributors.

Later today, the preliminary read of August's Michigan Consumer Sentiment Index is scheduled for release and is expected to remain near its highest level since October 2021.

EUR

The Euro is slightly lower this morning following a fresh batch of US and European data as EUR/USD seeks to avoid its fourth losing week in a row.

Beginning on the inflation front, France's annual inflation fell to 4.3% in July, improving from 4.5% in June due to lower energy costs and slower increases in food and manufactured product prices. Meanwhile, Spain's annual inflation rose to 2.3% in July after falling to 1.9% in June, moving back above the ECBs 2% target driven by increased clothing, recreation, and food prices.

In other news, France's unemployment rate rose to 7.2% in Q2, its highest since Q2 2022, while Italy posted another trade surplus in June, driven by a sharp decline in imports.

GBP

The British Pound is up around 0.2% this morning after posting three-straight losing sessions against the Dollar. Today's move in GBP/USD comes in the aftermath of a surprising UK GDP beat alongside the latest US PPI print.

The UK economy grew by 0.2% in Q2, surpassing expectations, highlighted by a 3.1% surge in government consumption and 1.6% growth in the manufacturing sector. The monthly growth rate was 0.5%, the highest since October, as manufacturing, construction, and consumer-facing services all showed growth.

UK trade numbers were also released this morning and indicated the UK'S trade deficit narrowed in June as exports remained steady while imports dropped 3.9% to a 16-month low.

JPY

Following yesterday's 0.7% decline versus the Greenback, the Japanese Yen is flat on the day and on pace for its second-straight losing week as the Dollar remains resilient. With this week's selloff, the Yen now finds itself at its lowest level in over a month as traders await to see if Japanese officials will turn up the rhetoric surrounding FX intervention to prop up the Yen.

Looking ahead to next week, Japan's economic calendar is headlined by its Q2 GDP release, set for Monday at 7:50 PM EST, followed by trade data on Wednesday evening and national CPI numbers on Thursday evening.

CAD

The Loonie is inching lower this morning as markets react to the latest US inflation figures. The Loonie is on track for its fourth-straight weekly loss and sixth in the past seven weeks.

According to the Royal Bank of Canada's latest Consumer Spending Tracker, consumer spending has begun to slow down, particularly in discretionary goods and services, as higher interest rates, an uptick in unemployment, and soaring household debt begin to weigh on Canadian consumers.

With no events on the Canadian calendar today, CAD traders will shift their focus to next week, when both consumer and producer inflation numbers are set for release, along with housing starts, wholesale sales, and manufacturing sales figures.

MXN

The Mexican Peso's volatile week continues today, up over 0.5% against the Greenback this morning following the latest batch of economic data out of Mexico and the US.

Earlier today, Mexico's industrial production print for June showed a 0.6% monthly increase from May, its third consecutive month of growth. Meanwhile, on an annual basis, production was 3.7% in June, less than the 3.89% seen in May but still at its highest levels since September 2022.

Finally, Mexico's Central Bank unanimously voted to keep interest rates unchanged at 11.25% yesterday and signaled they would remain at that level for some time despite Mexico's annual inflation falling for six straight months.

BRL

The Brazilian Real finds itself moving lower versus the Dollar today after this morning's double dose of inflation data from the US and Brazil.

Brazil's annual inflation surged to 3.99% in July, rebounding from a three-year low posted in June and surpassing market expectations. It's the first uptick in 12 months, driven by higher transportation, housing, and utilities prices. On a monthly basis, inflation rose 0.12% in July after declining 0.08% in June.

Looking ahead, Brazil's latest consumer confidence read is slated for 10:30 AM EST today. The index has tipped slightly above 50 in each of the previous two months, indicating signs of improving optimism amongst Brazilian consumers.

CNY

The Chinese Yuan is in the red for the second straight day, down over 0.2% against the Greenback this morning and on pace for its worst weekly performance in two months.  

The recent declines have pushed the Yuan to a one-month low following reports that a major Chinese property developer, Country Garden, is restructuring, exacerbating worries surrounding the country's property sector. The report from Chinese news outlet Yicai suggests restructuring could begin soon, following in the footsteps of other major developers such as China Evergrande Group.  

This latest development may put additional pressure on China's authorities to speed up their fiscal stimulus measures, which were alluded to at the recent Politburo meeting but have yet to come to fruition.