Morning Juice – US Session Prep (26th August)

Sentiment
The dollar slipped as traders offloaded longer-dated US Treasuries following Trump’s bid to oust Federal Reserve Governor Cook, stoking fears over the outlook for inflation.

The 30-year Treasury yield climbed four basis points to 4.93% as the move against Cook fueled concern that price pressures could intensify were Trump to reshape the Fed’s policy committee to favor lower borrowing costs.
The dollar edged 0.1% lower. S&P 500 futures were little changed.

Risk appetite received a further knock after Trump renewed his trade brinkmanship, threatening fresh tariffs and export restrictions on advanced technology and semiconductors in retaliation against digital services taxes abroad.

Stocks and bonds were already under pressure after the optimism that followed Fed Chair Jerome Powell’s address at Jackson Hole faded on Monday. Doubts about the pace of easing are lingering ahead of an inflation report later this week, expected to highlight sticky price pressures.

For the Fed, swaps imply about an 80% chance of a Fed quarter-point rate cut next month, with at least one more expected by year-end.

Docket
08.30 ET
US Durable Goods for July
Forecast: -3.8% | Prior: -9.4% | Range: 2.0% / -7.0%
US Core Durable Goods for July
Forecast: 0.2% | Prior: 0.2% | Range: 3.0% / -7.0%

09.00  ET
US CaseShiller 20 YoY for June
Forecast: 2.17% | Prior: 2.79% | Range: 2.70% / 1.80%

10:00 ET
US CB Consumer Confidence for August
Forecast: 96.5 | Prior 97.2: | Range: 100.0 / 94.0

13:00 ET
US Sells $69 Bln 2 -Year Notes

Speakers
08.30 ET
Fed’s Barkin Speaks before The Montgomery County Chamber of Commerce

10:00 ET
BoE Mann speaks at a conference commemorating the 100th anniversary of the founding of Banco de Mexico.
Text and Q&A is expected.

12:00 ET
Trump Cabinet Meeting

14:45 ET
BoC Governor Macklem speaks at a conference commemorating the 100th anniversary of the founding of Banco de Mexico
Text is Expected.

Good luck!