Powell Testimony, Canada Rate Decision, Euro-Area Gloom: Eco Day

(Bloomberg) --

Welcome to Wednesday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• Jerome Powell is likely to leave Fed interest-rate cuts firmly on the table when he appears before Congress, even though the latest jobs report dialed down the urgency. Lurking beyond traders’ apparently unwavering confidence that the Fed will cut this month is a more nebulous outlook on what the central bank does afterward
  • Bloomberg Economics’ Carl Riccadonna says the stakes are higher than usual for today and tomorrow’s testimony
• President Donald Trump has grown concerned that the strengthening U.S. dollar is a threat to his economic agenda and has asked aides to cast about for ways to weaken the greenback, according to people familiar with the matter
• The U.S. stance on Hong Kong’s protests, arms sales to Taiwan, and Huawei Technologies Co.’s fate are among issues in play alongside trade as the U.S. and China resume talks
• It’s rate decision day in Canada and a strong run of economic data is affording the central bank the opportunity to resist any dovish turn in global monetary policy
• The European Commission cut its euro-area growth and inflation forecast for next year, with trade tensions and policy uncertainty seen weighing on the region, strengthening European Central Bank President Mario Draghi’s case for further stimulus
  • Investors betting the ECB will wait until September before ramping up monetary stimulus may be underestimating the risk of earlier action
• The U.K. economy rebounded in May as car factories resumed work following Brexit-related shutdowns

To contact the reporter on this story: Zoe Schneeweiss in London at zschneeweiss@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Brian Swint

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