Morning, Traders!
This is a quiet start for a big week that holds the Bank of Canada Interest Rate on Wednesday, 2 testimonies from the Fed's Chairman on Tuesday & Wednesday, and the all-important delayed release of Nonfarm Payrolls on Friday, here are some things to look out for today.
Sentiment
As markets digested China's new, modest growth target, the dollar rose this morning, while Treasury yields fell.
The Swiss franc rose after consumer prices rose faster than expected.
European stock markets were mixed, and equity index futures in the United States fell.
If economic data continues to be strong, Federal Reserve Chair Jerome Powell is expected to echo fellow central bankers in suggesting that interest rates will rise sooner than policymakers anticipated just weeks ago.
According to San Francisco Fed President Mary Daly last week, policymakers will likely need to raise rates higher and keep them there for a longer period of time.
Richmond Fed President Thomas Barkin stated as well that the central bank must continue to raise interest rates.
According to people familiar with the matter, the Biden administration is nearing completion of an executive order that would restrict US companies' investments in parts of the Chinese economy, including advanced technologies that could enhance China's military and intelligence capabilities.
Docket
10:00 AM ET
US Factory Orders MoM for January
Median Forecast: -1.8% | Prior: -1.8% | Range: -0.5% / -3.6%
11:30 AM ET
US 3-Month Bill Auction
US 6-Month Bill Auction
Good luck!