Other markets

  • FTSE +0.02%
  • Euro Stoxx +0.33%
  • Dax +0.30%
  • Bitcoin +2.85%
  • Gold -0.15%
  • US oil +1.57%

Dollar dominates


The market started cautiously and quietly ahead of the hotly anticipated US CPI data. The main mover was largely USD driven. A US CPI beat is expected and there have to be concerns here that a strong move higher could create a disorderly bond market move that would weigh on stocks. So, watch out for that later depending on how hot the reading is. This is a good reminder that Omicron fears are just one narrative in the markets at the moment. The prospect of a Fed moving too far, too fast is the other narrative which can hit risk assets. So, if we get a very strong beat look for more upside in the Dollar and gold selling. A big miss in the CPI print and the AUDUSD should fly as well as gold being a good beneficiary.

US CPI print the driver

The anticipation of the US CPI print was the primary driver of quiet markets in the European session. A flat UK GDP print further weighed on a beleaguered pound and Sonia futures have now priced out the chance of December rate hike. If even Saunders were a tad more cautious last weekend then it would be a massive surprise if the BoE hiked next week.

Next week should be more interesting with a swathe of central banks meeting. Have a good weekend everyone