- Fed's Goolsbee: The right monetary policy calls for prudence and patience
- Goolsbee: The foremost thing on my mind ahead of May meeting is credit
- US sells 3-year notes at 3.810% vs 3.810% WI
- Treas Sec Yellen: I am not anticipating a downturn in the economy, although a possibility
- Yellen hasn't seen a contraction in credit yet
- Fed's Williams: Inflation is still way above our 2% goal
- IMF forecasts 2023 global GDP at 2.8% vs 2.9% in January
- US March NFIB small business optimism index 90.1 vs 90.9 prior
Markets:
- Gold up $14 to $2003
- WTI crude oil up $1.75 to $81.49
- US 10-year yields up 1.3 bps to 3.42%
- S&P 500 up 3 points to 4139
- CHF leads, NZD lags
Markets were finally fully open after a couple holiday-altered trading days and the market was still trying to find its legs. The US dollar chopped around with USD/JPY finding a low just below 133.00 in Europe then steadily grinding higher as Treasury yields recovered and sentiment improved.
That same sentiment didn't spill over to AUD and NZD, which continued to sag in North American trade. CAD was able to get some momentum thanks to a bump in oil prices.
The euro and pound were steadily bid in European trade but topped out early in New York and gave some back.
All eyes are on the highly-anticipated US CPI report tomorrow and that's likely to kick off the next leg of trading. Will we get back to inflation worries? Or will there be renewed talk about an economic slowdown?
