Good Morning Traders!
It is Friday the 10th of February, here are some things to look for today:
As part of a federal reserve exercise to test firms' ability to withstand crises, Wall Street's largest banks will face a hypothetical scenario of a severe global recession with heightened stress in both commercial and residential real estate markets.
Market narratives have become more optimistic about the chances of a soft landing, particularly following January's spectacular jobs report, but the suite of models that Economists follow still shows an elevated risk of recession - in fact, Fed chair Jerome Powell's preferred yield-curve indicator shows the chance of a recession in the next 12 months rose sharply in January.
The dollar rose against its group of ten peers as traders awaited key inflation data on Tuesday to assess the outlook for Fed rate hikes.
In Japan, the yen initially rose in response to media reports of a surprise nomination for Kazuo Ueda to lead the Bank of Japan, implying that investors interpreted the move as hawkish.
US treasuries extended losses on Thursday after investors pushed two-year treasury yields above 10-year yields for the first time since the early 1980s, indicating dwindling confidence in the economy.
Canadian Employment Change - Median Forecast: 15K | Prior: 104K | Range: 42.6K/-21.3K
Canadian Unemployment Rate - Median Forecast: 5.1% | Prior: 5% | Range: 5.3%/4.9%
University of Michigan Sentiment Prelim - Median Forecast: 65 | Prior: 64.9 | Range: 69/58.9
BoE's Pill speaks as a panelist at the "Société Universitaire Européenne de Recherches Financières workshop on gauging (dis)inflation pressures: comparing tools and current findings."
ECB's Schnabel participates in a live Q&A on Twitter.
ECB's De Cos speaks at Warwick economic summit in the UK.
Fed's Waller speaks at a conference on digital money and decentralized finance hosted by the Global Interdependence Center in La Jolla, California. Both text and a Q&A are expected.
Fed's Harker speaks at a conference on digital money and decentralized finance hosted by the Global Interdependence Center in La Jolla, California. Both text and a Q&A are expected.