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Absence Of Data Puts Focus On Fed Speak
We’re getting some mixed readings from the FX front into the North American open on this Monday, while US equity futures consolidate off record highs. Looking ahead, absence of US economic data will leave the focus on a Fed Harker appearance.
A Quiet Start To The Week
Things have gotten off to a quiet start as the week gets going, though we have seen some movement that’s worth highlighting.
Currencies Sideways, Stocks Turn Back Up
On Thursday, we got a more dovish leaning twist from noted hawk Fed Bostic, who said it would be appropriate to consider cutting rates this summer.
Market Pricing And Fed Pricing On The Same Page
Volatility has come down, with currencies chopping around and US equities consolidating off record highs.
Kiwi Slammed After RBNZ Delivers Dovish Hold
Economic data produced a mixed bag on Tuesday, leaving financial markets in an indecisive mood.
US Government Shutdown Worry Back In Headlines
The fact that the US government shutdown deadline is approaching with no budget deal to speak of is ruffling some feathers.
More Adjustments To Fed Rate Cut Bets
The market has been trading with some caution as the new week gets going. US equity futures are off a bit and the US Dollar is broadly bid.
Does The Market Have Tunnel Vision?
We often highlight the fact that the market has an amazing ability to focus on what it wants to focus on while dismissing anything that might call its views into question.
No Surprises From The Fed Minutes
The balance of risk was tilted in favor of a risk on reaction post Minutes. Indeed, this is how things played out.
FOMC Minutes Preview - Wednesday, Feb. 21
Later today, the Fed will release the Minutes from the January decision, a decision which forced the market to seriously reconsider expectations it had heading in.
Lots Of Dovish Talk Going Around
The conversation around lower rates has been a theme this week after US data disappointed, Canada's CPI came in soft, BOE Bailey offered up dovish comments, and China slashed rates.
Mixed Signals From Currencies And Stocks
We’re getting some mild mixed signals on this Tuesday thus far.
US Market Returns From Holiday Break - Tuesday, Feb. 20
Activity is expected to pick up on Tuesday as we get back into full swing following the US long weekend holiday break.
Currencies And Equities Less Bothered By Recent Updates
Over the past several days we’ve seen a serious adjustment in Fed rate expectations, with the market now only expecting 3.5 cuts in 2024, down from near 7 a month ago.
More Bad News Equals Good News For Financial Markets
It hasn’t taken long for the market to look past a less dovish Fed decision, stronger US jobs report, and hotter US CPI.
Investor Friendly Policy At All Costs
The market is committed to doing whatever it can to push for a narrative that is always pressuring the Fed into lower rates.
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