Market Brief, North America

The dollar is trading on a firmer footing and Treasury yields are steadying this morning after risk-sensitive asset classes suffered the worst losses in four months yesterday. The pound is coming off its lows after the Bank of England held rates steady for a fourth consecutive meeting and the nine-member Monetary Policy Committee split into three different blocs, with two members voting for additional hikes, while one member cast the first vote for a rate cut since the pandemic. The hawks: Jonathan Haskel and Catherine Mann, warned that rising household incomes and tight labour markets could translate into more durable...

Consolidative trading patterns are dominating markets this morning as participants prepare for a banger of a week. Tomorrow’s euro area gross domestic product, US consumer confidence, and job openings prints will help set the tone before Wednesday brings Canadian gross domestic product numbers, the Fed’s preferred wage cost measure, the Treasury’s quarterly refunding announcement, and a Federal Reserve meeting. Updated euro area inflation data and the Bank of England’s latest decision will drop on Thursday ahead of Friday’s January’s non-farm payrolls report. The greenback is holding steady, defying a slight drop in yields, equity futures are stable, commodity prices are...