Marc Chandler, Managing Partner at Bannockburn Global ForEx and Editor of the Marc To Market website, joins us to recap this week’s market moves, todays jobs number, central bank interventions, and inflation. We start off reviewing that one of the key takeaways in the jobs number, that came in just a little higher than expectations, was the lower unemployment rate of 3.5%, and this strong labor market gives the Fed more room to keep hiking rates longer and higher than many initially expected.
Next we review the recent rebound in the US Dollar and how it is moving in comparison to other currencies where we see more intervention to back stop market volatility. Marc unpacks the different strategies deployed by the Bank of England versus the Bank of Japan, and also the bigger process going on with the IMF and banks using swap lines.
We wrap up looking forward to the CPI data on inflation that we’ll get next week, and that it will be key to see how energy factors into the differential between headline inflation versus core inflation. We also look at what it may mean for China as they come back next week from holiday to a flurry of data on lending, trade, PPI, and CPI.