After recent fast decline of the yen, Fin Min Suzuki restarted verbal interventions, warning the government is closing monitoring the FX market. Later today, the calendar is thin. Michigan consumer confidence is expected to improve (slightly) (70.1 from 69.7). Interesting to see consumers’ assessment in the wake of strong holiday retail sales. Also keep a close eye at inflation expectations. We expect no big moves in yields. The bottoming out process is gaining credence. A constructive risk sentiment suggests it might be a bit too early for the dollar to start a new upleg.
U.S. stock index futures were subdued
on Thursday as optimism around a pause in interest rate hikes
waned, while a drop in shares of Cisco and Palo Alto on dour
forecast further weighed on sentiment.
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After a cooler than expected inflation report sent stocks soaring, investor focus will shift to corporate earnings from the financial and tech sector in the week ahead.