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.