US: Macro outlook uncertain – Lloyds Bank

Global bond yields mostly fell over the past week, while risk appetite improved, helped by more cautious comments from Fed Chair Yellen regarding US inflation prospects and, by extension, the policy outlook, explains the research team at Lloyds Bank.

Key Quotes

“US CPI surprised on the downside again on Friday, raising doubts whether the Fed will raise rates in September or indeed at all in the remainder the year. The US dollar was pressured further to the downside after the unexpectedly weak US retail sales and consumer sentiment. In this context, today’s US Empire survey will receive some attention. But markets will be looking ahead to later in the week, principally to UK CPI tomorrow and a busy Thursday with ECB and Bank of Japan policy decisions and UK retail sales.”