The way the market will react to this data point is most likely to be as follows. A strong inflation reading that comes in above 7% for the headline and above 6 % for the core will show market participants that the Fed still has more to do in terms of
Inflation dogs the RBNZ as they seek to bring inflation down to 2%
The Canadian CPI print will be released at 1330 UK time. If we see a surprise beat in the print then we would expect the CAD to rally higher on higher interest rate hike expectations. However, that will not change the outlook for the Canadian economy and could only end up
On Thursday the Bank of England meet and a 50bps rate hike is fully priced in. A 75bps rate hike is seen by Short Term Interest Rate markets as having a 80% chance. The key aspect of this meeting is going to be what the BoE signal about the growth outlook
The Bank of Japan have a problem. That problem is the weakness in the JPY. You can see from the index chart below that JPY weakness has been pronounced this year. The JPY being weak is great for Japan’s export economy. A weak domestic currency means that the countries exports are
The Fed are widely expected to hike interest rates by 75bps this Wednesday. Short Term Interest Rate markets are seeing it as a 100% probability and the same markets have a 79% chance of a larger 100bps hike. The expectations for larger hikes have increased after last Tuesday’s US CPI print
Gold and silver markets have both been pressured over the last few weeks on expectations of aggressive Fed hikes. On Tuesday this week both headline and core inflation printed at the high end of expectations. The reaction in the market was predictable and offered good opportunities to astute traders. Stocks, bonds,
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Risk Disclaimer: the information on this website is for educational purposes only and should not be considered investment advice.
