Quite an appreciation in the dollar index so far in April.

The two sharp upward moves this week were causes by

The hotter-than-expected inflation data), and

The escalation of Iran-Israel tensions.

#economy #markets #inflation #econtwitter

Thanks Carl Quintanilla
This is yet another example of a larger phenomenon — that of more people realising that
At least for now, a quick policy-induced journey to 2% inflation may not be the best outcome in terms of overall economic wellbeing, and
Around 3% inflation need…

Quick market update
The price moves in #gold and #oil reflect the greater concerns in #markets about Iran-Isreal tensions.
They have been accompanied by lower yields on government #bonds and a stronger #dollar .
#Bitcoins and #stock are down on the day.
#economy #investing

Per the just-released University of Michigan Survey, both one and five-to-ten year US inflation expectations rose to the highest this year (at 3.1% and 3.0%, respectively), while consumer sentiment fell (from 79.4 to 77.9). All three readings were worse than the consensus…

Bloomberg on the key aspects of the Bernanke report to the Bank of England regarding the central bank’s approach to forecasting key policy tools and outcomes.

#economy #markets #centralbanks Bank of England #EconTwitter

Per the ONS, UK GDP grew by 0.1% in February, led by manufacturing.
This brings the 3-month expansion to 0.2%, the best since last summer, and suggests that the UK would have exited its technical recession in Q-1.
Having said that, GDP is still 0.2% below its level of a year…

Gold prices are up again this morning, almost 1%, as more investors view it as a better hedge against geopolitical risks than government bonds due to US inflation concerns.
Gold is also seeing support from central banks, some of whom are motivated by more than just inflation and…

The link to yesterday's CNN interview.

Thank you, Julia Chatterley and Richard Quest, for the interesting conversation.

edition.cnn.com/2024/04/10/bus…

Quest Means Business CNN International #economy #markets #centralbanks #federalreserve #inflation #econtwitter

'If we continue with hot inflation prints, which we probably will for some time, there's a risk that the Fed will not only not cut rates but will increase it.'
Allianz Chief Economic Adviser Mohamed A. El-Erian on the latest uptick in U.S. inflation with Julia Chatterley and Richard Quest.

While they can easily attribute it to US developments, I suspect that the Japanese authorities will be anxious about the #markets maintaining for long the 153 yen level against the dollar.

#economy #japan #yen

From Jonathan Levin column, “Inflation Is Becoming Politics Nightmare for Fed.”

Bloomberg Opinion #economy #marketa #FederalReserve #centralbanks #EconTwitter

An important heads up from Nick Timiraos.

(For background, this from yesterday:

bloomberg.com/opinion/articl… )

#economy #FederalReserve #jobs #inflation #employment #EconTwitter

US PPI inflation came in better than the consensus forecasts with…

0.2% month-on-month increase in producer prices, versus the consensus forecast of 0.3%, and

2.1% annually versus 2.2%.

While on US data, weekly jobless claims came in at 211,000, lower than the consensus…

The first indication out of today’s European Central Bank governing body meeting is consistent with President Christine Lagarde’s previous statement that the Eurozone’s central bank is not “Fed dependent.”

The press conference is coming up.

#economy #markets #centralbanks #econtwitter

Fewer and Later:

Yesterday's hotter-than-expected US #inflation numbers led #markets to revise their expectations for rate cuts by the #FederalReserve .

The implied probability of a rate cut in June dropped from around 50% to 15%, and in July, from nearly 100% to 50%.…

Bond yields in the Eurozone and the UK have risen this morning, primarily due to yesterday's surge in US Treasuries.
This development occurs amidst growing economic divergence among the three that call for more individually-tailored policy responses.
(A qualifier to the 2024…

Posted earlier:
Today’s hotter-than-expected CPI inflation report, the third in a row, increases the probability of another Federal Reserve policy mistake … but not in the manner you may think. Here’s why:
bloomberg.com/opinion/articl…
Bloomberg Opinion #markets #economy #FederalReserve …

These headlines give you a flavor of how tomorrow's newspapers will frame today's inflation data.
Economists will be keen to understand how this could influence wage- and price-setting behavior.
Politicians will focus on voter impact.
#economy #markets #inflation #econtwitter

Today’s hotter-than-expected CPI inflation report, the third in a row, increases the probability of another Federal Reserve policy mistake … but not in the manner you may think. Here’s why:

bloomberg.com/opinion/articl…

Bloomberg Opinion #markets #economy #FederalReserve #inflation …