The Major Theme For Today Is Likely To Be Inflation

The major theme for today is likely to be inflation. In the U.S., unit labor costs rose slightly more than expected in the 2nd Quarter (4.9%), while productivity came in at 1.6%, which was largely as expected. The Dollar is marginally higher on the news. Looking ahead, the ISM service-sector index is in store, along with the Fed's Beige book. These, too, will be analyzed for clues for further clues on the nation's inflation picture. If we are, indeed, in the latter stages of the business cycle, labor market inflation would seem likely. Read More....