The inverted yield curve suggests that recession is a danger. Recent earnings reports, including Target today reflect the many headwinds facing the economy. The geopolitical risk from Ukraine is also lingering.
- USDIndex Steady 106.25 After ranging between 105.34 and 107.10. (Ηeavy data calendar saw stronger than expected retail sales, weaker than forecast industrial production, with a further big drop in the NAHB) YLower ields were achieved The 10-year fell 13 bps to 3.669% after a high of 38.4%. The 30-year was lower at 3837% by 12.5 bps. The curve inversion grew further to -68bps, a level not seen since 1981..
- Fed’s Waller: “more comfortable considering stepping down to a 50 bp hike” but he added he will not be making that decision until he sees more data. Waller was one of the The majority of hawkish These remarks are significant for the FOMC. Fed Daly stated that a pause is being considered for hikes. and reiterated Chair Powell’s comment that it is not even a point of discussion currently, in a CNBC interview.
- EUR – choppy at 20-day SMA. Bloomberg The source story proved that the ECB It will reduce its tightening cycle, and provide a 50-bp move in December.
- JPY – holding below 140But there are…