This essentially buys the Fed a few more months potentially to get a grip on inflation developments and that may qualm fears about yields rising too quickly, thus some breathing room for equities to keep running higher.
But eventually the data and more bullish economic prospects will bring about the same debate again and it’ll be interesting to see if Powell & co. can stick with this same script, especially when the market is very much eager to get on with it.
The BOJ report earlier has tempered with the market mood a little but I don’t quite see that staying the course, though dollar losses may remain more shallow as the market contemplates potentially higher yields still post-Fed.
0700 GMT – Switzerland February trade balance data
Prior release can be found here. Trade conditions – much like everywhere else – are still gradually catching back up to pre-virus levels so expect more of the same in the trend this year as well.
0730 GMT – Switzerland February producer and import prices
Prior release can be found here. A general indication of price pressures in the Swiss economy. A minor data point.
