Canada, US Hold Constructive Trade Talks as Tariff Negotiations Continue 
Trump Unveils $3 Billion U.S. Critical Minerals Push 
Asian Currencies Hold Steady as US Dollar Nears Seven-Week Low Ahead of Key Jobs Data 
Oil Prices Rise as Hormuz Reopening Remains Uncertain 
Philippine GDP Growth Slows to 2.3% in Q2 
BOJ Signals Faster Rate Hikes as Inflation Risks Raise September Move Odds 
Japan Executives Warn Weak Yen and Currency Volatility Threaten Economy 
US Yen Intervention Unlikely to Deliver Lasting Recovery, Yardeni Says 
US Dollar Gains as Iran Tensions, Fed Rate Hike Bets Rise 
Gold Price Hits Seven-Week High as Fed Rate Hike Bets Fade and Hormuz Deal Hopes Grow 
US Stock Futures Flat as Iran Strait of Hormuz Demands Fuel Oil Concerns 
Asian Stocks Slide as Semiconductor Selloff Weighs on South Korea and Japan 
Oil Prices Set for Steep Weekly Losses as Hormuz Deal Stalls 
China Inflation Cools in July as CPI Misses Forecast, PPI Deflation Eases 
US Dollar Falls as Weak July Jobs Report Dents Fed Rate Hike Bets 
Brazil's June inflation increased at 0.79% m/m, and compatible with an annual print of 8.89% y/y. Year-to-date, inflation has accumulated 6.2%. During June, the largest pressure came from the personal expenditures group, due to the lottery games adjustment, followed by the food group, which was pressured by dairy, meats and out-of-home food.
"It is believed, IPCA forecast to peak at 9.32% y/y during the next two months, then to move down softly to 8.9% by the end of the year. Risks to the forecast are if wages dynamics continue to deteriorate in a way that would affect services inflation this year, although It is expected quite unlikely in the short term" notes Barclays
Today's print does not change the view regarding the central bank reaction. It is believed central bank will solely focus on the inflation outlook, and as it incorporates the unusually high inflation prints for the period (mid-year inflation usually is lower due to seasonal food prices being lower), It is believed models to show a convergence of inflation to the mid-point of the target by the July 29 meeting. It is expected a 50bp hike by the end of the month, says Barclays.
