Attention this week turns to US jobs data, the looming US government shutdown and the auto workers strike
By Citi Wealth Insights |
USD: The Fed’s preferred gauge of inflation (core PCE inflation) registers 0.145%MoM in August, the third consecutive softer monthly reading and bringing the yearly gain to 3.9% which represents the lowest annual rise since May 2021. Core PCE services ex-housing is also up just 0.14%MoM after surging 0.47%MoM in July.
Weekly FX Focus - AUDCAD: Is AUD Too Far Out Of Step With CAD?
By Citi Global Wealth Investments |
Australia and Canada share similarities in that both are highly developed commodity producers with similar levels of GDP per capita and domestic issues. Yet one appears weaker than the other. This week, we turn our attention to a pairing that is approaching their lows and find out why despite similar demographics, Australia’s external metrics are structurally weaker than Canada.
Bank of Japan’s mixed messages likely a green light to tactically drive Yen towards 150 against USD
By Citi Wealth Insights |
JPY: The BoJ leaves its monetary settings unchanged at its September MPM on Friday while also keepings its forward guidance unchanged. The BOJ continues to note “extremely high uncertainty surrounding economies and financial markets at home and abroad,” (the same language as July) which makes it difficult to make sweeping policy changes.
Weekly FX Focus - GBPJPY: Sterling - Struggle & Stagnation?
By Citi Global Wealth Investments |
As the Sterling approach multi-year highs, we are still not at new levels compared to other Yen crosses. Will the GBPJPY pairing see a similar trend to the other Yen crosses? Will Japan’s latest warning about a possible intervention in Yen weakness affect the pairing? We take a look at some factors that could tell us more about Sterling’s outlook.
6 CB meetings this week including the Fed FOMC where markets expect a pause but will watch the dot plot
By Citi Wealth Insights |
USD: University of Michigan inflation expectations decline -the University of Michigan sentiment index for September (preliminary) declines to 67.7 from 69.5 with weakness largely led by the drop in the current conditions sub-index to 69.8 from 75.7.
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(MLP’s) - Energy Related MLPs May Exhibit High Volatility. While not historically very volatile, in certain market environments Energy Related MLPS may exhibit high volatility.
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