Good Morning Traders!
It is Friday the 24th of March and here are some things to look out for today.
Sentiment
Treasuries are surging this morning, led by the short end of the curve, as money markets almost completely erase Fed tightening bets and add to easing bets amid European financial turmoil.
The dollar index rose 0.5%, while the Japanese yen rises above 130 per dollar for the first time since February 10th.
Traders anticipate a quarter-point cut in US interest rates by June and 120 basis points by year's end.
Treasury Secretary Janet Yellen told US lawmakers that if necessary, regulators would take additional steps to protect the banking system.
Markets are signaling that the Fed is mistaken when it talks about further interest-rate hikes, with bond investor Jeffrey Gundlach among the most recent to predict cuts instead as the risk of recession rises.
Docket
8:30 AM ET
Canadian Retail Sales MoM for January
Median Forecast:0.7% | Prior:0.5% | Range: 1.8% / -0.1%
US Durable Goods February Prelim
Median Forecast: 0.5% | Prior: -4.5% | Range: 3% / -7.4%
9:45 AM ET
US S&P PMI Flash Data for March-
Manufacturing PMI - Median Forecast: 47 | Prior:47.3 | Range: 47.8 /45
Services PMI - Median Forecast: 50.3 | Prior: 50.6 | Range: 51 / 49.8
Speakers
9:30 AM ET
Fed's Bullard speaks at a Greater St. Louis event in St. Louis. Both text and a Q&A are expected.
12:00 PM ET
BoE's Mann Speaks as a panelist at the Global Interdependence Center Conference.
