• US CPI inflation fell in June to 3%
o This is a fall of 0.3% from May’s rate of 3.3%
o Core CPI is at 3.3%, a 0.1% drop from last month’s YoY rate
o Core CPI strips out food an energy prices
o Petrol prices were a driving force in the drop, falling by 3.8%
• The likelihood of a September rate cut seems ever more likely than it before
o Surveys showed at 72% chance at a September rate cut before
o This then jumped to 100% after the announcement
• US interest rate has been at 5.25-5.5% a 2 decade high
o At the beginning of the year, markets expected as many as 7 rate cuts in 2024, this expectation fell to 1 rate cut in September
• Following the news the dollar fell 0.6% against a basket of currencies
• US stocks rose following the announcement
o S&P 500 and Nasdaq rose by 0.1% shortly after.