GS Morning

This daily note covers the softer-than-expected June US CPI print, persistent geopolitical supply risks in the Persian Gulf impacting oil markets, a new short AUDNZD trade recommendation, and a dovish outlook for the upcoming Bank of Canada meeting.

Key Takeaways

• 1.June Core CPI print was softer than expected, supporting bond market steepening.
• 2.Brent crude risks are skewed to the upside due to geopolitical tensions and Persian Gulf supply disruptions.
• 3.Goldman Sachs initiates a formal short trade recommendation on AUDNZD via 6m 1.1650 puts.

Table of Contents

• 1) FX Trader Call Today @ 2:00 PM LDN
• 2) US ECON (MERICLE) – Core CPI Below Expectations
• 3) COMMODITIES RESEARCH (GRIGSBY) – Risks From Lower Gulf Flows and Higher China Imports
• 4) FX STRATEGY (KANTER) – Trade Recommendation: Short AUDNZD
• 5) CANADA ECONOMICS (PETERS) – July BoC Preview: In a Good Place

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