CANADA: USDCAD Erodes Trump Letter Inspired Rally Amid Firm Jobs Report
* Despite the composition of job gains in Canada being heavily tilted towards part-time, the lower...
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BUNDS: Spikes 20 ticks post US CPI
A 20 ticks jump in Bund following the Lower than expected US Inflation Data, the initial resistance is still at 131.00, so far only managed a 130.84 high on the bounce, and short of the earlier printed high of 130.97.
US DATA: CPI Services Surprise Softer For Both Rents and Supercore
Supercore below all six estimates seen beforehand:
- Core services excl OER & primary rents ('supercore'): 0.061% M/M after 0.209%. Latest 3mth av of 0.01%
- Core services excl all shelter: 0.056% M/M after 0.151%. Latest 3mth av of 0.046%
- Limited analyst estimates for ex OER & rents had averaged 0.18% M/M, ranging from 0.09 to 0.26
Rental inflation also below any analyst estimate we'd seen, especially for primary rents.
- OER: 0.27 vs an average analyst estimate of 0.33% (range 0.28-0.36) in May after 0.36%
- Primary rents: 0.21 vs an average estimate of 0.31% (range 0.29-0.32) in May after 0.34%
US DATA: Widespread Downside Surprises In Core Categories
Driving the lower-than-expected core CPI readings: pretty much every major category, with surprising deflation in core goods prices (-0.54%, led by used and new vehicles and apparel, vs +0.06% in April), with core services also on the soft side at 0.17% (0.29% April) - shelter and airfares the major downside surprises. See table:
