Morning All:
It is I, PiQ, back again to cover for the awesome Justin today and tomorrow.
The early look at European futures point to sizeable gains for the major bourses, this follows a stellar performance in the Asian tech sector.
As a reminder, it is Lunar New Year, and as such, the vast majority of APAC market participants are done for the next few days and liquidity in that region will be meagre until Friday.
A quick peek at USD pairs
Over the weekend, there's been a lot of fuss about a piece in the FT where Atlanta Fed President Raphael Bostic told the Financial Times in an interview…
"Every option is on the table for every meeting… If the data say that things have evolved in a way that a 50 basis point move is required or [would] be appropriate, then I'm going to lean into that . . . . If moving in successive meetings makes sense, I'll be comfortable with that."
Two reasons why I don't believe we should read too much into this.
One: Bostic is always Hawky AF.
Two: He doesn't even get a vote until 2024. And besides, there is plenty of road left to travel between now and the March meeting on the 16th of that month.
Looking ahead, we have German CPI and GDP data, along with the EU GDP numbers. Given the backwards-looking nature of the GDP data, I'd be reluctant to give that too much time. The ballgame is inflation.
We also have Fed's Daly and George speaking later, after the US open, and there will be many keen to see if either follow Bostic's lead.
I wish you all a most profitable week.
Keep it tight!
