That said, the NY Fed’s business gauge dropped sharply in January to -32.9 versus -4.5 market forecasts and -11.2 prior readings. The data also pushed the Federal Reserve Bank of Richmond’s President and CEO Thomas Barkin to state, “My hope is that we have passed the peak of inflation.” As a result, the US Dollar bulls had a tough ride.
Moving on, the Bank of Japan’s monetary policy announcements could offer immediate directions to the markets and are more important considering the latest tweak to its Yields Curve Control . Following that, US Retail Sales and PPI, expected 0.1% and -0.1% MoM versus -0.6% and 0.3% respective priors, could entertain the market players during a likely busy Wednesday.
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