Today’s trading pattern is carrying over the broader themes from August; leading into the open equities are higher, flirting back with their highs, bond yields are trending lower and the USD DXY index is flirting with a break above its August 6th high. The focus today remains positioning for developments at Jackson Hole; but the release of U.S. CPI (expected to come in at 2.0% y/y on headline and 1.9%y/y on core) will provide an important update on how inflation is evolving in the U.S. and Fed directly into Fed expectations. Also today is the release of housing starts, which have so far failed to break sustainably above 1mil. There are no Fed speakers before Friday’s speech by Yellen.
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