Today's news headlines:

‘Biden gets big economic win as inflation threatens legacy’. The US President’s Inflation Reduction Act passed through the Senate yesterday, sealing his $3tn ‘Bidenomics’ legacy. Despite the size of the legislation, Biden might still be consigned to a one-term Presidency, with much of the electorate casting blame on him for the recent bout of inflation. Biden has characterised his recent policies as trying to build the economy from the ‘bottom up and the middle out’, with the goal of supporting more families and reducing inequality. Whether it’s enough to help the Democrats in November’s mid-term elections will remain to be seen. (Bloomberg)

‘Sunak vows more cost of living support if he wins UK premiership’. The UK’s former Chancellor has committed to help ease the cost of living crisis for households across the country if he becomes the next Prime Minister. Sunak has pledged to build on the £400 support for energy bills once the size of the October increase is clear. The CBI has called for Boris Johnson to bring both Sunak and Truss together to agree on a comprehensive support package, rather than waiting until September. (Bloomberg)

Today

Overnight, Asian stocks were mixed along with US and European equity futures, with market participants reluctant to act decisively on the worsening economic outlook. US inflation data is due out tomorrow, although consumer expectations for long-term US inflation has dipped.

Events

BRC Retail Sales Monitor y/y: 1.6 vs -1.3% previously
Westpac Consumer Sentiment: -3.0% vs -3.0% previously
US Preliminary Non-Farm Productivity q/q: 1.30PM

Interbank rates:

GBP/USD: 1.2084
GBP/EUR: 1.1841
EUR/USD: 1.0204
USD/CAD: 1.2855

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