The current market anticipates a shift in US macroeconomic data this week, with key employment and inflation reports expected to influence interest rates. The Federal Reserve recently reduced rates and is looking towards further cuts in 2026, fueling speculation about additional reductions.
While a mixed economic data set might support a soft landing approach, it may not ignite substantial risk-taking. The primary concern remains potential hawkish surprises in inflation or employment, which could elevate yields and adversely affect risk assets.
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