Equities | Europe | FX | Global | Monetary Policy & Inflation
Markets to Watch This Week: BoE and RBA to Hike 50bps, and Upside Surprise for NFP
- By Bilal Hafeez and Ben Ford
- 3 min read
Market Moves
Markets took the 75bps hike from the Fed as dovish, although Dominique disagreed. She thinks the market is mistaken on both the Fed reaction function and the direction of inflation. Global yields continued to fall, alongside a generic bid for assets on the perceived dovishness (Chart 2). Notably, commodities saw the largest risk-adjusted move over the past week (John expects them to remain volatile; Chart 3). US high-yield credit spreads also tightened, and the USD weakened, in particular against BRL.
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