Is the best is the enemy of the good?
US economic reports may be too good for markets as they both tend to fuel inflationary fears and lower the need for a big stimulus…
Inflation expectations continue to decline and the US 10y bond yields is back below 1.6%. Reassuring comments from Fed members yesterday about the transitory nature of inflationary tensions reinforced the trend and fueled risk appetite. US consumers may express more concerns through the Conference Board survey that will be released today, while the IFO survey should confirm optimism about the recovery reigns in Germany today. The EUR/USD exchange rate is on the rise, well above 1.22 now.
Get more analysis and data with our Premium subscription
Ask for a free trial here