Sterling rallied to its highest rate in nearly ten months yesterday after figures for American consumer spending and retail sales came in below expectations, reducing further the chances of the US Federal Reserve raising interest rates again this year. Oil prices rose 1 per cent.
The consumer price index was unchanged in June, while core prices, stripping out food and energy, edged up just 0.1%, the Labor Department reported on Friday. The year-on-year CPI has been softening steadily since February, when it hit 2.7 per cent.
Economists had forecast the CPI edging up 0.1 percent last month and its drop of 0.1 percent in May and the lack of a rebound in June could trouble Fed officials who have largely viewed the recent moderation in price pressures as transitory.
"The CPI data begs the question, at what point does transitory becomes something that is more sustained, in terms of the softness", said Richard Franulovich, senior currency strategist at Westpac Banking Corp in NY.
The Federal Reserve is embarking on an annual summer ritual: Downgrading its overly optimistic forecasts for economic growth and, potentially, preparing for a pause in interest rate increases. The drop came after the USA data raised doubts about United States economic growth and whether the Fed will hike rates again this year.
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CNN reported earlier on Thursday that Grassley planned to issue the hearing invitation and would issue a subpoena if necessary. "I think it's been lackadaisical enforcement, and he would be an example of that lackadaisical enforcement".
EARNINGS WATCH: Companies in the USA and in Asia will begin reporting their quarterly financial results and give their earnings forecasts for upcoming quarters next week. Instead, it stayed flat, and the inflation rate over the past 12 months moved further away from the Fed's 2% target, falling to 1.6% from 1.9% in May.
Despite two straight months of decreasing retail sales, consumer spending likely gained steam in the second quarter after a helping to restrict economic growth to a 1.4 per cent annualised rate in the first quarter.
As we discussed two weeks ago, USA data has disappointed for much of 2017, and that's created questions behind just how aggressively the Fed might be able to hike.
The euro EUR= gained 0.64 percent to $1.468.
Bank stocks have been helped by expectations that interest rates are going higher, and the fact that the Trump administration is pushing deregulation of the sector. The pan-European FTSEurofirst 300 index of leading shares rebounded to rise 0.10 per cent and close at 1520.41. The Dow rose 0.1 percent to 21,553.09.
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Kelly Kramer, who heads Mayer Brown's white collar defense practice, also pointed to the Second Circuit's discussion of evidence. Dean Skelos (who is making an appeal similar to Silver's) and a bid-rigging scandal touching on Cuomo's formerly closest aide.
West Texas Intermediate (WTI) crude futures settled up 46 cents, or 1 percent, at $46.54 per barrel.
Wall Street expected a 0.1% gain in overall retail sales and a 0.2% rise ex-autos.
Extending early slide, the greenback dropped to an 11-day low of 1.3012 against the pound. "This keeps the Fed on a gradual pace" for further rate increases, said Eric Souza, senior portfolio manager at SVB Asset Management in San Francisco.
Political strategists say they expect a tax-reform bill to be presented in the fall and approved by next year, but the markets have doubted whether tax reform is still viable based on how long it has taken Congress to revise Obamacare.
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In an interview previous year , the actress told Women's Health magazine: "I have down days". And now Lea , who was dating Cory when he passed away, has shared an emotional tribute.
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