The market is still watching longer-term US Treasury yields. The 10-year rate continued climbing to new highs for the year; reflecting rising confidence in the broader economic outlook as inflation expectations are driven higher. Fed Chair Jerome Powell also appeared to be rather indifferent to the rally in the bond markets.
The US Dollar mostly outperformed its major counterparts last week, and got another kicker on Friday with Non Farm Payrolls coming in at an impressive 379K versus an expectation of 182K.
In commodities WTI crude oil prices soared buoyed by a rather unexpected output hold from OPEC+ and Sunday’s Houthi rebel attack on Saudi oil facilities.
Metals closed mostly lower on the week pushed lower by yields and the corresponding rallying US$.
This week the European Central Bank will announce its monetary policy announcements. Since the rise in longer-term government bond yields has not been exclusive to the USA, it will be important to see how other central banks feel about longer-term bonds and whether or not action is warranted.
We have a slew of inflation data this week; China, USA which should give the bond markets and thereby the US$ its next direction.
Markets will also get a read on consumer sentiment data through the University of Michigan’s consumer sentiment survey. Again, a better-than-expected print may bolster the economic outlook and push the US Dollar higher
| Date | Country | Figures | Expected | Previous |
| March 09 | EU | GDP QoQ | -0.6% | 12.4% |
| EU | GDP YoY | 5% | -4.3% | |
| March 10 | China | CPI YoY | -0.4% | -0.3% |
| USA | CPI YoY | 1.7% | 1.4% | |
| USA | Cushing Oil Stocks | 0.485M | ||
| March 11 | EU | ECB rate decision | 0% | 0% |
| USA | Jobless claims | 725K | 745K | |
| March 12 | UK | GDP YoY | -10.9% | -6.5% |
| UK | GDP 3mth average | -2.5% | 1% |
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