Goldman Sachs response to the US CPI report - affirms a final FOMC rate hike July

The US CPI report for June came in lower than the consensus expected for both headline and core m/m.

• US June CPI y/y 3.0% versus 3.1% expected

Goldman Sachs say that the result of the inflation report "is consistent with our view that Fed tightening is in its final innings".

GS said they thus continue to expect:

• "a final 25bp hike at the July FOMC meeting to 5.25%-5.5%
• followed by unchanged policy for the remainder of the year"

More on the market response to the US CPI is here:

• Forexlive Americas FX news wrap 12 Jul: US CPI softer. USD/yields lower. Stocks higher

Big love from the EUR!