The main focus is on what the Fed will do next after the highest US consumer inflation in 40 years.
The market is jittery after Bullard talked up a quicker pace of tightening, calling for 100 bps by July. That sent equities reeling and the selloff is continuing today, with the dollar turning around and marching higher after some back and forth action overnight.
It is tough to see the market mood switch back around on a Friday, especially with some anxiety over a potential Fed move in between meetings. There is some murmurs of that considering this expedited closed meeting that will be held on 14 February, though it could just be nothing.
In any case, with Treasury yields holding higher and 10-year yields set to close above 2% this week, it will make for a really interesting setup to the next few weeks. If anything else, equities may face a rougher time amid the volatility and uncertainty unless the Fed decides to do some hand-holding.
0700 GMT - UK Q4 preliminary GDP figures
0700 GMT - UK December GDP figures
0700 GMT - Germany January final CPI data
0730 GMT - Switzerland January CPI data
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
