GBP

• Market reversal. The unwind of this week’s US inflation driven moves has continued. Equities higher, US yields eased a bit, & the USD lost ground.• Sentiment vs reality. The positive tone has come through despite sluggish global data. Japan & the UK entered recession, US retail sales declined.• AU jobs. The jobs report underwhelmed, but technical factors point to an unwind next month. AUD has clawed its way back to where it started the week. Investors have been in a ‘bad economic news is good for markets’ frame of mind. The unwind of the US inflation driven bout of...

• Sentiment improved overnight. US equities rose, bond yields dipped, & the AUD outperformed. UK inflation failed to re-accelerate.• The Fed’s Goolsbee also tempered the markets negative vibes by keeping the door open to a policy re-calibration later this year.• Australian labour force data due today. Analysts are looking for jobs to rebound after the outsized December drop. Markets settled down overnight with the burst of risk aversion following the hotter than expected US inflation data partially unwinding. US and European equities rose with the tech-sector outperforming (NASDAQ +0.9%, S&P500 +0.5%), while bond yields dipped. The US 2yr rate declined...

• Quiet start. Subdued markets with modest moves in equities, bond yields, & the major currencies. Firmer metals prices help the AUD a little.• US inflation. January US CPI due tonight. Leading indicators point to US inflation continuing to slow. Will this see the USD lose ground?• AUD crosses. Pairs like AUD/GBP, AUD/EUR & AUD/NZD look to be trading too low compared to levels implied by yield differentials and/or other fundamentals. It has been a quiet start to the week, unsurprising given the limited news flow and with several Asian markets closed for the Lunar New Year. In contrast to...