After yet another hot CPI report in the United States, inflation data will remain at the forefront of the upcoming week’s releases, including in the United Kingdom. But first up on the UK agenda will be the February employment report on Tuesday.
Speaking to the parliament today, BoJ Governor Kazuo Ueda highlighted the possibility of future reduction in monetary stimulus, contingent on the alignment of economic and price conditions with current projections.
Dollar falls broadly today and stays weak as markets enter into US session. The underlying cause of this sell-off remains somewhat ambiguous, as there were no significant economic data releases to directly attribute the currency's selloff. The slight retreat in treasury yields, specifically the 10-year yield just gyrating between 4.35-4.40, appears insufficient to solely account for the Dollar's dip. Additionally, market sentiment does not clearly lean towards risk-on, evidenced by European indexes trading in the red while US futures saw marginal rises. This situation raises questions about whether traders are preemptively betting on the anticipated US CPI data set for release tomorrow.