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The market got what it wanted from the Fed on Wednesday. The dot plot held to 3 rate cuts in 2024 and Chair Powell then went on to downplay the recent inflation uptick. This resulted in fresh record highs in US equities and a surge in currencies against the US Dollar. read report
Activity is expected to pick up on Wednesday as we inch closer towards today’s highly anticipated Fed policy decision. As we come into Wednesday a lot of what we’ve been seeing and hearing away from the US has been leaning more dovish, which has resulted in added US Dollar demand. read report
Already on Tuesday we’ve had two central bank decisions, both of which inspiring dovish reactions. Looking ahead, key standouts on the calendar for the remainder of the day come from Eurozone and German ZEW reads, Canada inflation, and US housing starts and building permits. read report
Last week, we got a strong round of US economic data accompanied by hotter US inflation reads. The takeaway of course is that there might be a lot more pressure on the Fed to be looking to scale back its rate cut outlook at this week’s meeting. read report
Earlier this week, US CPI data came out hotter than expected, which should have had the market a little more worried about less investor friendly tweaks to Fed policy next week. And yet, the market shrugged off the data with stocks continue to track in record high territory. read report
The market is doing its very best to try and ignore this week’s hotter US inflation data. But as the week marches on inability for US equities to extend their run of record gains could be making investors a little more unsettled. read report
We were surprised by the subdued reaction in the aftermath of the US CPI print. Rates markets haven't really budged all that much and investors continue to turn a blind eye to any signs the Fed might need to be less accommodative than what is being priced. read report
Things have been relatively quiet as the week gets going. It seems market participants are waiting for some more bite that we’re getting in today’s economic calendar. As things stand, the rates market is pricing in 90 basis points of cuts at the Federal Reserve in 2024. read report
We’re back to seeing broad based US Dollar outflows and record high US equities after a round of Fed Chair testimony in which Jerome Powell was celebrated by markets for embracing the rate cut outlook. read report
Fed Chair Powell stuck with his bias for a rate cut outlook in his Wednesday testimony, which helped to prop up the stock market and inspire currency demand against the Buck. Looking at the calendar for the remainder of the day, we’ve got German factory orders, the ECB policy decision, Canada trade, US trade, US initial jobless claims, and more Fed Chair Powell testimony. read report
