After Trump comeback, normality to return to markets with US CPI. GDP data from UK and Japan to also be important. But volatility to likely persist as markets assess impact of Trump. Wall Street and Bitcoin rallied to record highs, while the US dollar skyrocketed to 4-month highs. Perhaps the most significant move, however, is the surge in Treasury yields.
The UK economy is forecast to have grown by 0.2% q/q during the quarter, slowing from the prior quarter’s 0.5% pace. Faster-than-expected growth in Q3 would further dash hopes of the BoE speeding up rate cuts over the coming months, and this may help the pound recoup some of its recent losses versus the greenback. However, disappointing data could add to sterling’s woes, potentially pushing it below $1.29.