NY Fed president Dudley made somewhat dovish comments pushing USD lower across;

  • -Inflation has come off SHARPLY this year which is certainly a surprise
  • -Not clear if weak inflation is temporary or long lasting

 

Kansas City Fed president George speech was rather neutral to more optimistic in some areas bringing USD back up a bit;

  • -US under full employment
  • -Gradual hike is appropriate
  • -It is time to continue rate hikes
  • -Inflation is relatively mild
  • -Low inflation helps consumer

 

In the meantime Japan Q2 GDP was out slightly weaker than expected at 2.5% annualized vs 2.9% expected.

Japan July Current Account surplus was higher than expected mainly due to increasing trade balance surplus, which should weigh on $JPY,  Nikkei trading lower on weak GDP as well.