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Will the PCE Deflator Really Contain New Information?
The US dollar is narrowly mixed as North American participants prepare to return for the last session of the first half. Despite firmer than expected Tokyo CPI and stronger than expected industrial output, the market lifted the greenback around JPY161.25 before profit-taking pressures bought it back toward session lows near JPY160.65 in Europe. President Biden is thought to have lost last night's debate with Trump, but it does not appear to be much of a market factor. The immediate focus is on today's PCE deflator, which we suggest below may not have lasting impact as the signal has already been given from the CPI ... (full story)