The week after the main Central Banks announced their interest rates a repricing of expectations took hold. The USD was once again the main winner as markets began pricing in an interest rate rise by June 2022 as inflationary pressures continue to build.
US consumer inflation was the market driver as CPI moved to 6.2% YoY for October. We need to look back 30 years when Oil Prices were being driven higher after the first Gulf war and Octobers number was the fifth straight month above 5%. Fed Funds are now pricing in a 72% chance of one or more 25bps rate increases by June 2022 vs 32% a month ago.
The week ahead is quieter on the data front and the markets left with much to digest. The markets will be looking for signs that central banks are wrong and they will need to raise interest rates sooner then they have projected. Eurozone CPI this week will give some indication if the markets are liking what Lagarde is saying.
Weekly Majors Market Performance
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Peyman Khosravani is a global blockchain and digital transformation expert with a passion for marketing, futuristic ideas, analytics insights, startup businesses, and effective communications. He has extensive experience in blockchain and DeFi projects and is committed to using technology to bring justice and fairness to society and promote freedom. Peyman has worked with international organizations to improve digital transformation strategies and data-gathering strategies that help identify customer touchpoints and sources of data that tell the story of what is happening. With his expertise in blockchain, digital transformation, marketing, analytics insights, startup businesses, and effective communications, Peyman is dedicated to helping businesses succeed in the digital age. He believes that technology can be used as a tool for positive change in the world.
