Global central banks have spent trillions of dollars and the years since the financial crisis battling to ward off deflation and with mounting signs that their efforts are now paying off, inflation numbers are a key market focus Tuesday.
Despite the strengthening trend in data seen in recent months, rhetoric from central banking chiefs continues to be tilted away from pursuing swift actions to address rising prices and instead directed towards prioritizing other economic imperatives. Meantime longer-term bond yields in key global markets have been on a mostly steady march higher since last summer.
Inflation data out of China on Tuesday surprised to the upside with spikes in energy costs leading the way, helped by food and tourism. Yet the People’s Bank of China looks set to maintain its focus on containing leverage and preventing bubbles over targeting inflation – and according to some economists, is right to do so for now.
USD/CAD – Canadian Dollar Unchanged, Trudeau Meets With Trump
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Craig Erlam
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