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In the US session, markets will focus on the release of June PCE inflation and the Q2 Employment Cost Index, according to analysts at TD Securities.

Key Quotes

“TD looks for the ECI to rise 0.7%, in line with consensus, which would push the y/y rate to a new post-crisis high of 2.8%.”

“Core PCE inflation is expected by the market to remain unchanged at 2.0% y/y, with prices up 0.1% m/m. Headline PCE inflation should likewise hold steady at 2.3% y/y while personal income and spending are each expected to rise 0.4% m/m.”

“Chicago PMI will be released later in the morning and the market looks for a decline to 62.0 from 64.1, which would leave the index well into expansionary territory.”

“Consumer confidence for July (market: 126.0) will round out the data calendar.”