Amid escalating trade war fears, the greenback marched higher across the board and was further supported by hotter-than-expected US PPI print, coming in to show that the wholesale cost of goods and services rose at the fastest yearly rate in almost seven years. Traders continue to deal with the possibility of a further escalation in the dispute between the world’s two largest economies and the impact that quarrel could have on global growth. Washington and Beijing now have about seven weeks to strike a deal or dig in for a trade war that could upend corporate supply chains and raise prices for consumers. High-level trade talks between the pair were said to have ground to a halt, just as investors were poised to turn their focus to corporate-earnings season and growth in the economy.
Earnings season gets into gear with JPMorgan Chase & Co. and Citigroup Inc. among the largest companies due to give results. The most noteworthy U.S. data may be the June inflation report later today, which consensus expects will show both headline and core price growth picking up. Investors will also get a small dose of monetary policy speculation in the form of ECB meeting minutes and a Federal Reserve speaker. The German government will kick off the session with a final estimate of June consumer inflation. The consumer price index (CPI) is projected to rise 0.1% month-on-month and 2.1% annually. The harmonised index of consumer prices (HICP) is projected to grow 2.1% compared with 12 months earlier.