The markets today will focus on two events: first, the US labor market data (2.30 p.m.), and second, Jerome Powell’s speech in Zurich (6.30 p.m.). Yesterday a strong rally due to the renewed hopes in the trade war (in the video a scheme that repeats itself again and again) and good US economic data – but all this could make the Fed more hesitant in terms of interest rate cuts. So it’s all the more important whether the US labour market data, the most important economic data for the US, confirms these latest figures today – and whether Powell’s statements fulfill the markets’ hopes of interest rate cuts (currently pricing in 4.4 cuts over the next twelve months). Today, there is a certain reconciliation between expectations and reality.
The ECB decision has just been announced. The ECB interest rate (refinancing rate) remains unchanged at 0.00%. The extremely important bank deposit rate on remains unchanged at -0.40%. The marginal lending facility also remains unchanged […]
Christine Lagarde is to become the new head of the ECB – and that means a monetary policy for the ECB that is at least as ultra-lax in the coming years as it has been […]
Hooray, the new Fed President Jerome Powell takes office today – the first non-economist since the 1970s! Is it coincidence that the markets are extremely nervous about the Fed? Historically, the US Indices have problems […]