Week Ahead: Earnings Season in Full Swing as the Delta Variant of the Coronavirus Wreaks Havoc
While last week was full of economic data and central bank meetings, this week will be lighter on both fronts. Major central bank meetings are limited to the ECB this week. Economic data will be light, highlighted by PMIs at...
Week Ahead – ECB on Deck as Stimulus Debate Heats Up
Financial markets want to know if the Fed is committed to a sustained inflation overshoot. The bond market flattener trade suggests many market participants think we have seen the peak in yields. Inflationary pressures are showing no signs of easing...
Forward Guidance: Canadian Retail Sales Rebound; Services Take Over as Driver of Spending Growth
The big story next week will be the preliminary read on June retail sales after softer readings in April and May. Our own consumer tracker points to a sizable rebound in June sales, up 5-6% month over month after a...
Strong US Retail Sales; Should the Fed Consider it Transitory?
With easy monetary policy and more money from the government, US consumers are borrowing at low interest rates and spending stimulus checks US Retail sales for June were strong. The headline print was +0.6% vs -0.4% expected. May’s print was...
ECB Preview – Aligning Forward Guidance to Strategic Review Outcome
When ECB meets next week, the market attention turns to the implications and new communication on the back of the new strategic framework. We do not expect new policy signals coming from the change in language. We expect an acknowledgement...
Tech Stocks Q2 Earnings Preview: Tech Rally To Continue?
Big tech report whilst hovering around all time highs Heading towards US tech stocks earnings seasons the Nasdaq is trading around its record high record high. The reflation trade is in retreat. Growth expectations have soured, reflected in falling US...
NZ Dollar Under Pressure ahead of CPI
The New Zealand dollar has reversed directions and is down considerably on Thursday. Currently, NZD/USD is trading at 0.6986, down 0.61% on the day. New Zealand CPI eyed After the RBNZ grabbed the headlines on Wednesday and sent the New...
ASX200 Range Holds After Stronger AU Jobs Offset By Softer China GDP
Consensus expectations heading into the labour market data were for employment to rise +25k and for the unemployment rate to fall to 5.0%. On both metrics the labour market exceeded expectations as the unemployment rate fell to a 10 year...
Bank of Canada Reduces Bond Purchases, Expects Economic Slack to be Absorbed in Second Half of 2022
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Dollar Index Has Hit A Three-Month High. Fed May Tighten The Monetary Policy
The consumer price index data slightly shocked financial markets. Annual consumer inflation accelerated to 5.4% from 5% (the forecast was 4.9%), and the core CPI increased to 4.5% from 3.8% (with the forecast of 4.0%), it’s a record for the...