- US December wholesale inventories +2.2% vs +2.1% prelim
- BOC's Macklem: We expect business investment will grow faster in Canada than US
- Macklem warns that trucker blockades could add to supply chain issues
- More from BOC Macklem: Rising path in rates is not one increase, it's multiple increases
- Fed's Mester: Expects inflation to moderate based on Fed taking 'appropriate action'
- More Mester: If inflation does not come down from the middle the year Fed will move faster
- More from Mester: Would not necessarily start balance sheet runoff with bond sales
- Fed's Bostic says we may be at the cusp of inflation decline
- Fed's Bowman: Trying to keep an open mind about US central bank digital currency
- US EIA weekly crude oil inventories -4756K vs +369K expected
- ECB's Schnable: De-anchoring of inflation expectations may call for a response
- BOE's Pill: It's better to adopt a more measured approach
- More from the BOE's Pill: Bank rate at 1% is not a trigger for gilt sales
- Boston Fed names Susan Collins as its next President
Markets:
- Gold up $7 to $1832
- WTI crude up 56-cents to $89.95
- US 10-year yields up 1 bps to 1.947%
- S&P 500 up 63 points to 4583
- NZD leads, GBP lags
The dollar and yen were generally softer as the risk mood steadily improved as volatility stayed low. Commodity currencies were the main winners as they grinded moderately higher with the bulk of the moves coming late in European trading before flattening out.
Cable would normally be expected to flourish given the risk backdrop but it struggled instead, giving back an early gain. Some of that might have been on comments from BOE chief economist Pill, who advocated for a moving slowly on rate hikes.
The euro generally chopped sideways in a 1.1420-40 range before settling near the lower end of that range.
Oil started in negative territory once again but a tighter US inventory report and better risk appetite quickly turned the trade and led to a solid gain. USD/CAD benefitted more from that than Macklem but he did hint at a more-aggressive runoff of the balance sheet, starting as soon as next month. That will be something to keep an eye on.
Tomorrow is CPI day in the US and that's sure to be a market mover.
