3 reasons why the fed will hike this month (despite the lower us cpi print)...
Source: C. Barraud
On the back of the lower us cpi print, Euro rose sharply against dollar
On the back of the lower us cpi print, Euro rose sharply against dollar, closing at the highest level since March 2022, completely decoupled from its macro data.. Source: Bloomberg, www.zerohedge,com
The probability of a July 26 rate of 25 basis points to 5.25% to 5.50% barely moved
Despite the better-than-expected CPI report today, the probability of a July 26 rate of 25 basis points to 5.25% to 5.50% barely moved. The market is strongly expecting a hike in two weeks. Source: Jim Bianco
US inflation eased further in June w/core & headline coming in each at 0.2% MoM (v.s 0.3% expected).
Headline CPI slowed to 3% YoY vs 3.1% expected (and lowest since March 2021), core dropped to 4.8% YoY vs 5% expected. This is the 12th straight month of YoY declines in headline CPI - equaling the longest streak of declines in history (since 1921)... Source chart: Bloomberg
US 30 year Mortgage Rate
The US 30 year mortgage rate has hit a new decade high at 7.38%, up 23 bps since last week, per BankRate
With fiat currency, it is as simple as this...
With fiat currency, it is as simple as this... Source: Wall Street Silver
New cobalt, copper, lithium and nickel mines needed
Per a McKinsey report, the current 500 cobalt, copper, lithium and nickel mines operating today will need to almost double to 900 in order to meet battery demand. Almost 80% increase in mines needed.
Israel pauses after 10 rate hikes but signals it may not be done
Israel’s central bank left interest rates
unchanged for the first time in over a year, halting an
unprecedented cycle of monetary tightening but signaling it’s
still on alert for the threat of faster inflation.
Source: Bloomberg
