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Fed's Dudley: Weak dollar should help boost import prices, help push up inflation

Additional remarks from New York Fed President William Dudley is crossing the wires, with the key takeaways, via Reuters, found below:

  • Don't expect inflation to get back to 2 pct in medium term
  • Year over year inflation measures will be depressed for a while
  • Weak dollar should help boost import prices, help push up inflation
  • Sequential U.S. inflation numbers should rebound more quickly
  • Should take 6-10 months for weak recent inflation readings to 'drop out' of annual inflation readings
  • Rising U.S. wealth inequality could push up savings rate, possibly weaken economy at margins

GBP/USD struggles to hold above 1.30 despite USD weakness

The GBP/USD pair climbed to 1.3015 after the PPI data from the U.S. failed to match the market consensus but had a tough time preserving its gains. At
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GBP/JPY drops more than 100 pips to 6-week lows

The combination of a stronger yen and a soft pound pushed GBP/JPY to extend the current bearish move...
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