Drivers for the Week Ahead

  • We get the first February data from the US manufacturing sector this week; the US economy remains strong; FOMC minutes will be released Wednesday
  • Canada reports some key data this week
  • Preliminary eurozone February PMI readings will be reported Friday; UK has a busy data week
  • Japan has a busy data week; Australia reports January jobs data Thursday Continue reading “Drivers for the Week Ahead”

EM Preview for the Week Ahead

Concerns about the coronavirus are likely to keep EM under pressure, as the ultimate impact is still unknown.  Global growth was already at risk before the virus hit and now the outlook is even cloudier. Continue reading “EM Preview for the Week Ahead”

Dollar Firm Ahead of US Retail Sales and IP Data

  • The dollar rally continues; the US data highlight today will be January retail sales and IP
  • The Fed announced that it will cut back on its repo operations again starting today
  • Senate confirmation for Fed nominee Judy Shelton will be a close call
  • Banco de Mexico cut rates by 25 bp to 7.0% yesterday; Brazil central bank intervened in the FX markets
  • Sterling is holding up after yesterday’s gains following the cabinet reshuffle; Eurozone Q4 GDP grew 0.9% y/y
  • Japan’s parliament confirmed Seiji Adachi to replace outgoing BOJ board member Yutaka Harada Continue reading “Dollar Firm Ahead of US Retail Sales and IP Data”

Riksbank Preview

Sweden is one of the few countries that have tightened monetary policy post-crisis. However, that tightening cycle appears to have ended and the Riksbank is likely to keep rates steady when it meets this Wednesday. Continue reading “Riksbank Preview”

Dollar Treads Water Ahead of Powell’s Humphrey-Hawkins Testimony

  • The dollar’s gains have been broad-based
  • During the North American session, the US reports January CPI; Fed Chair Powell delivers his semiannual Humphrey-Hawkins testimony to the House
  • UK reported mixed data today
  • Philippine exports surged 21.4% y/y in December while Fitch moved the outlook on its BBB rating from stable to positive
  • Reserve Bank of New Zealand decision comes out tonight after US markets have closed Continue reading “Dollar Treads Water Ahead of Powell’s Humphrey-Hawkins Testimony”

Markets on Edge as New Week Begins

  • The coronavirus death toll is just over 900, exceeding the SARS epidemic; the dollar remains firm
  • President Trump will unveil his budget proposal for FY2021 beginning October 1 today
  • The faltering eurozone economy comes just as political uncertainty is picking up in Germany
  • Norway inflation spiked in January; Turkish local rates spiked after regulators cut the FX swap limits for local banks
  • Japan reported December current account data; China January CPI came in at 5.4% y/y in January, higher than expected Continue reading “Markets on Edge as New Week Begins”

Drivers for the Week Ahead

  • Risk-off sentiment intensified last week; the dollar continues to climb
  • This is another big data week for the US; the US economy remains strong
  • Fed Chair Powell testifies before the House Tuesday and the Senate Wednesday; the Senate holds confirmation hearings for Fed nominees Shelton and Waller Thursday
  • President Trump will unveil his budget proposal for FY2021 beginning October 1 this Monday
  • Eurozone and UK have heavy data weeks
  • Riksbank meets Wednesday and is expected to keep rates steady at 0.0%; RBNZ meets Wednesday and is expected to keep rates steady at 1.0% Continue reading “Drivers for the Week Ahead”