Yesterday’s major US economic data (Q4) GDP lower; 3.9% From 4.2% Better than you expected 3.6%, strong consumer spending, Durable goods, New Home SalesLower Inventories And Weekly Claims at new 22-mth lows), all adding to the soft landing and disinflation scenario of the US economy. Next week, a FOMC 25bp rise is possible. 98% Probability is up from 94% yesterday (2% to 50bp!)). Stocks rallied, USD Recovered and Yields Recent lows were beaten by a rebound. Overnight – Asian stocks hit 8-mth highs and Core Inflation in Tokyo hit a 42yr high at 4.3%. European & UK FUTS also higher. #TESLA Gained +10.97%.
- The USD Index Attested the 8-mth lows 101.25, Yesterday, rallied to the test 102.00 Following the trades and data back to 101.75 now.
- EUR – sank below 1.0900 After posting 9-mth highs 1.0929 Lows and highs 1.0855 Yesterday, before recovering to 1.0875 now.
- JPY – Sank to test 129.00 yesterdayBefore rallying to 130.50Back to 129.50 Follow the CPI data to now be up to 130.00.
- GBP – Sterling has rallied in the past 1.2400 Yesterday and again today, but it has failed to hold the key resistance level. Return to 1.2370 now.
- Stocks – Yesterday, the US markets rallied (+0.6% to +1.76%) yesterday. US500 +1.10%, (+44) 4060, US500 FUTS…
