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28 Jan 2024

Will the US Fed lean against rate cut pricing?

• Soft landing? US GDP & PCE inflation data supported ‘soft landing’ views. Growth was better than expected, while inflation pressures continue to ease.• FX consolidation. Despite the macro signals FX majors have been range bound. USD is treading water, with AUD near its 200-day moving average.• Event radar. It is a busy week with Eurozone GDP/CPI, China PMIs, Australian inflation, & a range of US labour stats wrapped around the US Fed meeting. Last weeks economic dataflow supported views the US remains on the very narrow path towards a ‘soft landing’. US GDP exceeded expectations with growth running at...

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