US economic research analysts at Fitch with the heads up on earlier Federal Open Market Committee (FOMC) rate cuts:
- The Fed will be worried (about) additional weakness in the labor market down the road
- Powell signalled that the balance of risk between the unemployment rate and inflation is now two-sided and the labour market is now back in balance
- Which gives the Fed an incentive to start cutting rates sooner than later, now that inflation seems to be back on that path down to 2%
The USD has gained a little ground here in Asia on Monday morning after the US political violence over the weekend. First was January 6, 2020, now this:
ps. Bear in mind that it's a Japanese holiday, which is extending the super-thin liquidity conditions until Singapore and Hong Kong get more active. Having said that the absence of Japan will leave a hole all day:
