David Scutt, FOREX.com APAC Market Analyst, unpacks how China’s July inflation data reflects broader global price dynamics.
In July, Chinese consumer prices were flat year-on-year while core inflation rose to 0.8%, the highest level in 17 months, driven by falling food prices. Meanwhile, producer prices dropped 3.6%—the largest decline in two years—highlighting persistent weakness in domestic demand and trade uncertainty. Although authorities have introduced temporary cuts to overcapacity in sectors such as coal and lithium, these measures are less extensive than reforms enacted during previous deflation cycles. As a result, the outlook for sustained recovery remains uncertain. Importantly, the impact extends beyond China, with producer prices showing a strong correlation to US and German import costs. These signals are closely watched by central banks as they assess external inflation drivers in an increasingly interconnected global economy.
What are the major events and indicators on tap for the global economy that could charge volatility in markets and reshape deeper fundamental themes? Sign up for the updated Global Macro Calendar updated each week with a two week look ahead of the top events!
---- Written by Frederic Guetin, StoneX TV Producer
---- Expert: David Scutt, FOREX.com APAC Market Analyst
StoneX TV content is created, produced, and distributed solely by StoneX Media Ltd (“StoneX TV”) and is provided for informational and educational purposes only. StoneX TV does not provide investment, financial, legal, or tax advice and does not make any recommendation or endorsement of any investment strategy, transaction, or financial instrument. Nothing in this content constitutes, or should be construed as, investment advice or a recommendation to buy, sell, or hold any financial instrument, including securities, futures, derivatives, digital assets, foreign exchange products, or CFDs. This content does not constitute an offer, invitation, or solicitation to engage in any investment activity. The information presented is general in nature and is not tailored to the financial situation, investment objectives, or risk tolerance of any specific person. You should not rely on this content as a substitute for independent professional advice. Investing and trading in financial instruments involves significant risk of loss and is not suitable for all investors. Past performance is not indicative of future results. Any views or opinions expressed are those of the presenter at the time of publication and are subject to change without notice. Such views may not necessarily reflect those of StoneX Media Ltd or its affiliates. StoneX Media Ltd and its affiliates, including StoneX Group Inc., may from time to time have positions in, or engage in transactions involving, the financial instruments referenced. This content may include general market commentary and opinion. It does not constitute independent investment research and has not been prepared in accordance with legal requirements designed to promote the independence of investment research. StoneX Media Ltd is not authorised or regulated to provide investment services and does not act in a fiduciary capacity. StoneX Media Ltd is incorporated in Ireland and operates in accordance with applicable Irish law. It is a wholly owned subsidiary of StoneX Group Inc. and is a separate legal entity from other subsidiaries within the StoneX Group, which may be regulated in various jurisdictions. StoneX Media Ltd does not act on behalf of, or provide services for, any regulated affiliate. This content is not directed at, and may not be distributed to, any person in any jurisdiction where such distribution would be contrary to local laws or regulations. Supporting documentation for any claims, comparisons, statistics, or technical data may be made available upon reasonable request, where applicable.
Our subscribers have access to comprehensive market analysis from StoneX spanning commodities, equities, currencies and more.
Gold has slid 12.6% from its August high to a nine-week low as rising long-dated U.S. Treasury yields keep weighing on the metal. That pressure has pushed gold into a critical technical support zone just as Federal Reserve minutes come into focus.
The British pound has spent 11 months inside a sideways, contracting range on the GBP/USD weekly chart, absorbing a U.S. dollar index rally to fresh 2026 highs. Oversold momentum in sterling and the euro against an overbought dollar index puts that range at the center of the pair's next directional move.
U.S. fiscal worries are lifting Treasury yields and putting pressure on the Swiss franc, even as rate expectations ease. The bond market, not the Federal Reserve alone, is setting the tone for USD/CHF.
Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.
Reach
With access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
Transparency
As a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
Expertise
From our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.
