- Inflation data from both Germany and Spain showed an intensifying disinflation trend, with even some German provinces posting price declines on a monthly basis. This triggered a sharp move lower for the Euro (EUR) against the US Dollar (USD), erasing nearly all gains booked last week.
- At 14:00 GMT, Pending Home Sales for July will come in. Expectations are for sales to increase by 0.4%, down from the 4.8% rise seen a month earlier.
- Around 19:30, comments are expected from Federal Reserve Bank of Atlanta President Raphael Bostic, who delivers a presentation and participates in a Q&A about the Federal Reserve and the US economic outlook to Georgia Tech's Scheller College of Business Management of Financial Institutions class.
- Equities are trading flat in Asia, looking for directions after markets branded the Nvidia earnings report as a miss. European and US equities are trading flat to minor losses.
- The CME Fedwatch Tool shows a 65.5% chance of a 25 basis points (bps) interest rate cut by the Fed in September against a 34.5% chance for a 50 bps cut. Another 25 bps cut (if September is a 25 bps cut) is expected in November by 44.2%, while there is a 44.6% chance that rates will be 75 bps (25 bps 50 bps) below the current levels and an 11.2% probability of rates being 100 (25 bps 75 bps) basis points lower.
- The US 10-year benchmark rate trades at 3.84%, not that far off its peak for this week near 3.87%.
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