Danske Research Team
Danske Bank A/S
Summary
Underlying inflation has moderated in the US and euro area. Inflation pressures ease gradually with weak goods inflation and in the case of US, cooling job market and lower wage growth. In the euro zone, wage growth remains sticky despite some easing in the latest Q2 data. Commodity prices have caused volatility in both realized and expected inflation as rising tensions in the Middle East and renewed stimulus in China balance still weak global manufacturing outlook. We expect 25bp cuts from both the ECB and the Fed in the coming meetings
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