Morning, Traders!
It is Friday the 17th of February, the last day of the week before the Holiday-extended weekend.
Here are some things to look out for today.
Sentiment
After hawkish signals from policymakers yesterday, the dollar erased its year-end losses, as treasury rates increased across the curve on growing expectations of further rate hikes by the Federal Reserve.
Following remarks by a representative of the European Central Bank, the yield on European bonds also increased, and the region's stocks declined along with the decline in Wall Street equity futures.
Despite the ECB's hawkish repricing, the euro dropped to a six-week low of $1.0630 as executive board member Isabel Schnabel expressed concern that markets may understate inflation. Bonds issued by Germany were quickly sold by investors, and bets on rate increases increased.
According to Bank of America strategists, the delayed onset of a US recession will hurt stocks in the second half of the year because of higher interest rates that will last longer due to the strong economy thus far.
An official from the Bank of Canada reaffirmed that the central bank can deviate from its peers in normalizing interest rates and said policymakers are focused on the 2% inflation target.
Docket
8:30 AM ET
US Import/Export Prices MoM for January
Import Prices - Median Forecast: -0.1% | Prior: 0.4% | Range: 0.1% / -1%
Export Prices - Median Forecast: -0.2% | Prior: -2.6% | Range: 1.1% / -0.4%
Canadian PPI for January
MoM - Median Forecast: -0.1% | Prior: -1.1% | Range: 0% / -0.5%
YoY - Prior: 7.6%
Speakers
8:30 AM ET
Fed's Barkin discusses the labor market at an event hosted by the Rosslyn Business Improvement District in Arlington, Virginia.
Text: No. Q&A: Yes, with both audience and media
8:45 AM ET
Fed's Bowman takes part in a discussion at the Tennessee Bankers Association Credit Conference in Nashville.
Text: No. Q&A: Yes, from the moderator, Webcast: no
Good luck, and have a great holiday weekend!
