13 Feb 2023

Global financial markets are growing increasingly nervous ahead of tomorrow’s US inflation report. The dollar is up, yields are inching higher, and equities are down. Implied volatility levels are slightly elevated, and risk-sensitive currencies like the Canadian dollar are on the defensive.  Today’s data calendar is light, with the Federal Reserve’s Michelle Bowman discussing topics unrelated to monetary policy, and Japan reporting fourth quarter gross domestic product.  January’s consumer price index update could prove destabilizing for markets that have spent much of the last four months betting on a rapid easing in inflation pressures. The Bureau of Labor Statistics is...