German inflation on the agenda in Europe today

In the aftermath of the Fed yesterday, the dollar fell and risk trades rallied strongly after Powell & co. signaled that they might be getting close to slowing down the pace of rate hikes. He did not rule out a 75 bps rate hike in September but made clear that perhaps they can seal the deal by being less aggressive now that they reached neutral territory and that the economy is slowing down.

A more data-dependent approach means that markets will have to fill in the blanks themselves. And the first big data to look at will be the US Q2 GDP data later today. Powell said that he hasn’t seen the numbers yet but provided a caveat in saying that any initial figures tend to be revised (though can work in either direction).

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