Risk-off/Wait-and-See Approach Makes Perfect Sense

Markets Friday’s session had some interesting features in store. European traders eyed the second voluntary TLTRO repayment opportunity. The amount totaled a little less than €450bn, topping the €296bn in November and bringing the remaining outstanding amount to around €1.3bn. In US dealings, a higher-than-expected PPI reading served as a reminder of sticky price pressures […]

Pound Shrugs as GDP Beats Forecast

It promises to be a very busy week in the UK, with a host of key events on the calendar. Monday started on a positive note, as GDP for October climbed 0.5%, up from -0.6% in September and ahead of the 0.4% consensus. Investors will have plenty of data to digest, including employment, inflation, retail sales […]

AUD/USD Drops, Confidence Data Next

The Australian dollar has started the week in negative territory. In European trade, AUD/USD is trading at 0.6766, down 0.44%. Australian dollar eyes confidence releases Australian confidence indicators headed south in the most recent releases – will we see an improvement on Tuesday? NAB Business Confidence slipped to zero in October, down from 5 a […]

'Quite before the (potential) storm' on markets today

Markets ‘Quite before the (potential) storm’ on markets today as investors are counting down to a large plethora of data and policy decisions later this week. European and Asian investors started the week with a tentative risk-off mood as a cold snap in most of Europe and rising Covid infections in China highlight short-term roadblocks […]

Will the ECB Signal the Need for More Rate Hikes?

Following the slowdown in the euro area inflation during the month of November, investors changed their minds with regards to whether another triple hike is needed by the ECB, with hopes of a peak in sky-high prices allowing them to conclude that a 50bps increment may be more appropriate. The ECB meets on Thursday at […]

All Eyes on the US CPI

Market movers today The market highlight today will be the US CPI for November. We see upside risks to consensus expectations and look for a decline in headline inflation to 7.4% (from 7.7% in October) on the back of lower energy prices, but with core inflation holding steady at 6.3%. Further signs of peak inflation […]

All Eyes on US CPI

European equities traded in the red at the start of the week, but equities in the US rebounded as investors are hanging on to hope of slower inflation and reasonably hawkish Federal Reserve (Fed) by their fingernails. Today and tomorrow will tell whether they are right being optimistic or not. The latest US CPI data […]

Markets Adopted a Holding Pattern, Await US CPI

Markets European and American stocks parted ways yesterday. The former closed half a percent lower in choppy trading (EuroStoxx50) as investors eye the impact on power markets from this winter’s first real cold snap. Wall Street finished up to 1.58% higher (DJI) with some pointing to the NY Fed inflation survey (see below) serving as […]

All Eyes on the CPI

Stock markets are tentatively higher in Asia while Europe and the US are poised for a similarly modest start to trade in what is the start of a hectic 72 hours in the markets. For so many weeks now, the December Fed decision has dominated the minds of traders, while sentiment in the markets has […]

US CPI Could Shake Up FOMC Decision

Usually, we have all the key data points ahead of an FOMC decision to make a better evaluation of what could happen. But this time, the most important data for the Fed will be released during the first day of their meeting, later today. Then tomorrow the FOMC releases its decision. Depending on what the […]