Markets closed out a quiet week of trading, on a positive note, with bond yields rebounding back upwards and the US Dollar firming. The Fed Chairman Powell spooked markets, and the prevailing narrative that we had reached 'peak inflation', therefore 'peak interest rates'. Powell was not confident that the Central Bank had done enough to rein in inflation. This narrative may be 'jawboning', but may not, and could result in further rate rises. The rising US Dollar pushed the EUR back down to 1.0660, while the GBP slipped below 1.2200.
The rising reserve impacted the commodity currencies, with the AUD falling to 0.6340, while the NZD crashed below 0.5900. The RBA released their latest 'Monetary Policy Statement', which confirmed inflation would remain 'higher for longer' and will require further pain, in the form of interest rate rises. The Australian Government has embarked on a record high immigration level policy, boosting headline GDP, while fuelling the inflation fire. This coming week will be very focused on global inflation and growth, while watching developments on the Geo-Political scene, in Eastern Europe and the Middle East.
Weekly Market Calendar
13/11 NZ Services PSI/NZ Composite PCI, Japan PPI, German Current Account
14/11 US Budget, NZ Food Inflation, Australia Consumer/Business Confidence, Sweden/Spain CPI, UK Employment, EU GDP, EU Employment, German/EU ZEW Economic Sentiment, NFIB Small Business Optimism, US CPI
15/11 NZ Credit Card Spending, Japan GDP, China Industrial Production/Retail Sales/Employment, Japan Industrial Production, France Employment, UK CPI/PPI, France/Italy CPI, ECB Meeting, EU Trade/Industrial Production, US Weekly Mortgage Applications, US PPI, US Retail Sales
16/11 Japan Trade Exports/Imports, Australia Inflation Report, Australia Employment, China House Price Index, US Weekly Jobless Claims, Philly Fed Manufacturing Index
17/11 US Industrial/Manufacturing Production, NAHB House Market Index, Kansas City Fed Manufacturing Index, NZ PPI, Japan Retail Sales, EU Current Account, EU CPI, US Building Permits/Housing Starts
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