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Global Markets Show "Little Fuss" Over Middle East Exchange of Fire as Await Data, Says Scotiabank

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The week's developments heat up quickly, starting on Wednesday with the United States consumer price index and the Bank of Canada policy decision ahead of the European Central Bank the following day, said Scotiabank.

There was "little fuss" over the U.S. and Iran exchanging fire overnight Tuesday, as oil is basically flat, noted the bank.

Sovereign bond yields are a touch "antsy" ahead of U.S. CPI as evidenced by a mild cheapening bias across U.S. Treasuries, British Gilts and eurozone government bonds, stated Scotiabank.

Equities are broadly in the red with losses of 0.75% to over 1% in U.S. futures, -0.5% in TSX futures and around -0.5% across European cash markets.

The US dollar (USD) is mixed as it's losing ground to South Korea's won (KRW), Canadian dollar (CAD or loonie) and European crosses but up against the yen (JPY), Australian dollar (AUD) and New Zealand dollar (NZD), added the bank.

The yen is stable despite reports that Bank of Japan Governor Kazuo Ueda has been hospitalized and will skip next week's meeting, but will probably be there in July. Markets are priced for a hike next week, according to Scotiabank.

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