Good Morning Traders!
It is Tuesday 10th of January, it's a fairly quiet day in terms of scheduled events, with traders awaiting comments from the Fed's chairman, who speaks on a panel today regarding central bank independence.
Other than that, here are some things to look out for.
Sentiment:
As traders awaited words from Federal Reserve Chair Jerome Powell today and the release of US inflation data on Thursday, the dollar gauge maintained close to a seven-month low this morning, and treasuries edged down.
These events would give traders an additional insight into the trajectory of interest rates. Following yesterday's hawkish Fed statement, European markets declined for the first time in three days while US equity futures declined.
In a report that will be released by the world bank later on todau, the organization will discuss worries that "additional unfavorable shocks" might cause the global economy to contract in 2023.
When and where would US inflation would peak was the question that dominated financial markets the previous year. The 2023 version will probably be how far and how fast it decreases.
Some of the biggest asset managers in the world, such as Blackrock, are warning that markets are underestimating both inflation and the final peak of US interest rates, just like they did a year ago.
Docket:
10:00 AM ET
US Wholesale Inventories MoM Revised for November - Median Forecast 1% | Prior 1% | Range 1%/0.4%
12:00 PM ET
US EIA Short-Term Energy Outlook Report
1:00 PM ET
US sells $40 bln 3-Year Notes
Speakers:
9:00 AM ET
Fed's Powell speaks at a panel on Central bank independence and the mandate at a symposium hosted by the Riksbank.
The exact speaking time is to be determined. Text is expected and a Q&A is expected from the moderator and the audience.
10:35 AM ET
ECB's De Cos & ECB's Knot Speak at the Central bank independence panel, with the topic of policy coordination in a globalised world at the Riksbank international symposium event in Stockholm.
11:30 AM ET
ECB's Centeno appears before lawmakers in a committee in parliament.
Good luck!
