U.S. CPI data for June expected to slow sharply
Dollar sags to 2month low
World stocks and bond prices rise for third straight day
Gold inches to 3week high

LONDON, July 12 Reuters Bets on a screeching slowdown in U.S. inflation data later saw traders shove the dollar to a 2month low on Wednesday and push stocks up and bond market borrowing costs down for a third day running.

Economists polled by Reuters expect to see June U.S. consumer price inflation slow to 3.1 from 4 in May, which might be enough to convince the Federal Reserve to end its aggressive rate hikes if not this month, at least soon. 

Europe39;s main stock markets had opened 0.7 higher , led once again by the highflying tech sector, and MSCI39;s main 47country world index was up a full 20 from rate hikeinduced lows hit in October.

The currency market was moving too. The dollar39;s low meant it notched its longest losing stretch since March. The yen clambered back above 140 and sterling hit a 15month high as the Bank of England said the UK was coping with higher interest rates.

Risk assets, as usual, seem to take the best out of whatever is happening. said James Athey, an investment director and fund manager Abrdn in London.

For the CPI data, the core reading which strips out volatile elements such as energy prices, will matter the most for markets, he added.

If it doesn39;t give the impression of the immediate cessation of these price pressures we could see a reversal of some of these more…