Given the latest surge in government bond yields around the globe, investors may pay extra attention to the US employment report for February, due out on Friday. A good report may add to expectations over an overheating economy, which could result higher inflation, and thereby equities may slide further. The RBA decision on Tuesday and the OPEC+ meeting on Thursday may also come into the limelight.

On Monday, we get the final manufacturing PMIs for February from the Eurozone, the UK and the US, and as it is the case most of the times, they are expected to confirm their…


Equities and other risk-linked assets pulled back yesterday and today in Asia, while the US dollar rebounded as bond yields surged once again after a disappointing auction of 7-year US notes. This suggests that despite Fed Chair Powell’s dovish remarks on Tuesday and Wednesday, investors remained worried that the economic recovery will lead to high inflation.

Bond Yields Rally Again, Pushing Equities and Other Risk-linked Assets Down

The US dollar traded higher against all but one of the other G10 currencies on Thursday and during the Asian session Friday. It gained the most versus NOK, AUD, GBP, and NZD in that order, while it eked out the least gains against JPY…


Major equity indices were a sea of green yesterday and today in Asia, as Fed Chair Powell reiterated his dovish stance, adding that it may take more than three years for inflation to reach the Fed’s goals. His remarks suggest that monetary policy is likely to stay extra-accommodative for longer than assumed and adds more credence to our view for a supported market appetite.

Equities Rebound as Powell Pushes Back on Inflation Concerns

The US dollar traded lower against the majority of the other G10 currencies on Wednesday and during the Asian session Thursday. It lost the most ground versus NOK, NZD, AUD, and CAD in that order, while…


Yesterday, Fed Chief Jerome Powell maintained his dovish stance, helping equities to rebound during the US session. However, this did not last for long, as this may have been largely anticipated. Inflation fears returned, and yields rebounded during the Asian session today. Overnight, the RBNZ stood pat, projecting that interest rates may turn higher in December, something that helped the Kiwi to trade higher.

Inflation Fears Persist Despite Powell’s Dovish Stance

The US dollar traded higher against the majority of the other G10 currencies on Tuesday and during the Asian session Wednesday. It gained the most versus CHF, JPY, SEK, and EUR, while it underperformed only versus…


Das Hauptereignis dieser Woche könnte das halbjährliche Zeugnis des Fed-Vorsitzenden Powell vor dem Kongress am Dienstag und Mittwoch sein. Angesichts des Anstiegs der Renditen für Staatsanleihen in der letzten Woche könnten die Marktteilnehmer unserer Ansicht nach nach Hinweisen hinsichtlich einer Verringerung des QE-Programms suchen. Am Mittwoch haben wir auch eine geldpolitische Entscheidung der RBNZ. Wir glauben, dass die Bank pari bleiben wird und daher die ganze Aufmerksamkeit auf die Formulierung der zukünftigen Pläne fallen sollte.

Der Montag scheint ein eher ruhiger Tag zu werden. Die einzige erwähnenswerte Veröffentlichung auf der Tagesordnung ist die deutsche Ifo-Umfrage für Februar. Der aktuelle Bewertungsindex…


Most equity indices slid yesterday and today in Asia, perhaps as rising inflation expectations continued driving government bond yields to the upside. With that in mind, today, investors may lock their gaze on Fed Chair Powell’s semi-annual testimony before the Senate Banking Committee. They could be looking for clues as to when the Fed is considering to begin scaling back its QE purchases.

Rising Yields Push Equities Down Ahead of Powell’s Testimony

The US dollar traded lower against all but one of the other G10 currencies on Monday and during the Asian session Tuesday. …


O principal evento na agenda desta semana pode ser o testemunho semestral do Presidente do Fed Powell perante o Congresso na terça e na quarta-feira. Em nossa opinião, dado o aumento da semana passada nos rendimentos do Tesouro, os participantes do mercado podem procurar dicas com relação à redução do QE. Na quarta-feira, também temos uma decisão de política monetária do RBNZ. Acreditamos que o Banco permanecerá firme e, portanto, toda a atenção pode recair sobre a linguagem sobre seus planos futuros.

Segunda-feira parece ser um dia leve, com o único lançamento na agenda que vale a pena mencionar sendo…


El evento principal en la agenda de esta semana puede ser el testimonio semestral del presidente de la Fed, Powell, ante el Congreso el martes y miércoles. En nuestra opinión, dado el aumento de la semana pasada en los rendimientos de los bonos del Tesoro, los participantes del mercado pueden buscar pistas con respecto a la reducción gradual de la QE. El miércoles, también tenemos una decisión de política monetaria del RBNZ. Creemos que el Banco se mantendrá firme y, por lo tanto, toda la atención puede recaer en el lenguaje sobre sus planes futuros.

El lunes parece ser un…


L’événement principal du programme de cette semaine pourrait être le témoignage du président de la Fed Powell devant le Congrès mardi et mercredi. Etant donné la hausse des rendements de bons du Trésor la semaine dernière, les acteurs du marché pourraient chercher des indices concernant la réduction du QE. Mercredi, nous avons également une décision de politique monétaire RBNZ. Nous pensons que la Banque tiendra bon et que, par conséquent, toute l’attention peut tomber sur le langage au-dessus de ses plans.

Lundi semble être un jour léger, la seule publication du calendrier à mentionner étant l’enquête Ifo allemande de février…


The main event on this week’s agenda may be Fed Chair Powell’s semi-annual testimony before Congress on Tuesday and Wednesday. In our view, given last week’s rise in Treasury yields, market participants may look for hints with regards to QE tapering. On Wednesday, we also have an RBNZ monetary policy decision. We believe that the Bank will stand pat and thus, all the attention may fall to the language over its future plans.

Monday appears to be a light day, with the only release on the agenda worth mentioning being the German Ifo survey for February. The current assessment index…

JFD

JFD is a leading Group of Companies offering financial and investment services and activities.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store