It's a steady and quiet start to trading this week and understandably so. Market players will be rather pensive, waiting on some big US data in the days ahead.
We'll get a bit of a teaser tomorrow from the PPI report but the big one to watch this week will be the CPI report on Wednesday. Here is the full list of key risk events to watch out for this week.
Traders have calmed down after the panic from last week but are still pricing in ~46% odds of a 50 bps rate cut for September. Given fears about the labour market and the economy, further confirmation of the disinflation process will likely see traders call out to the Fed again to accelerate the pace of rate cuts.
And all in the name of just trying to make sure that the rally in equities keeps on rolling.
That's pretty much where we are at in this cycle right now. Good stuff, eh?
