Market Brief, North America

Measures of market turbulence are falling ahead of a slew of central bank decisions, suggesting that investors feel confident in rates nearing a peak for the current cycle. Over the coming days, the Federal Reserve is expected to stay on hold and adjust its “dot plot” projections to show rates remaining high for longer. Another hike from the Bank of England is narrowly favoured in fixed-income markets, but growing signs of economic weakness could push the vote and accompanying statement in a more dovish direction. The Bank of Japan is considered unlikely to change its policy settings, with traders instead...

Currency traders are squaring their positions this morning ahead of a series of potentially market-moving data releases and policy decisions in the coming days. The dollar is inching lower, two-year yields are holding above the 5-percent threshold, and equity futures are setting up for a softer session. The subdued open comes after a week in which Treasury yields snapped higher, stocks fell, and the greenback broke an extended winning streak. With August core consumer prices, producer prices, and retail sales all coming in hot, investors began to lose hope in a rapid pivot toward looser monetary policy from the Federal...