{podcast} US equities drifted lower on Friday with defensive shares outperforming. US data mostly beat expectations with solid retail sales instigating a pullback on Fed rate cut expectations. The move higher in front end UST yields boosted the USD while softer China data didn’t help commodity linked currencies with the NZD bearing the brunt of it while the AUD ended the week with a 68c handle. Ahead of the ECB Sintra forum that starts tonight, the 5y5y EU inflation swap plumbed to a new record low on Friday and in a similar vein long term US consumer inflation expectations also hit a new record low setting the scene ... (full story)