US Inflation Data in Focus

The US dollar's recent advance, most notably against the Japanese Yen, has been arrested after Federal Reserve Chair Janet Yellen dampened some of the expectations surrounding monetary policy tightening.

The consensus estimate of economists is calling for the core consumer price index (CPI) to have risen only 1.70% percent year-over-year through the end of June. On a monthly basis, the core CPI figure is projected to climb 0.20% after a 0.10% gain in May.

Following the June rate increase, the Fed has been keenly watching inflationary trends to determine the course for policy. Given that the stakes are high, today’s session is likely to be volatile, especially for the dollar basket of currencies.

USDCHF is trading within a very tight range early Friday, with the pair hovering around the 0.9670-mark

US corn futures tumbled on Thursday after the US Department of Agriculture raised its stocks forecast, based on increased corn plantation and the number of areas under harvesting.

In its monthly supply and demand report, the USDA lifted its forecasts for end 2017-18 corn stocks to reach 2.325 billion bushels from the 2.110 billion bushels in inventories recorded during June. Analysts polled by Reuters were anticipating a figure of around 2.181 billion bushels, with the latest estimates blowing them away.

Most of the US corn crops pass through their yield-determining pollination phase in July.

Furthermore, the recent shift in weather and the outlook for marginally less heat next week were seen as benefitting the development of the crop.

Corn futures for September delivery ended Thursday at $368.50 with prices mounting a pullback in Friday morning trade.