The week started with plenty of omicron optimism but now the bulls are taking a break. In FX that’s pushing the yen higher and weighing on the commodity currencies. The UK offered some forecasts today about omicron and negative Q1 GDP and that’s percolating.
For the US, tomorrow is a highly anticipated CPI report and some of the risk aversion could be selling ahead of that and/or next week’s Fed decision.
For today, the lone data point of interest is the weekly initial jobless claims data. We remain near 50-year lows and today’s reading is expected at 215K, down from 222K.
We also get wholesale inventories later and a 30-year bond reopening sale.
For Canada, the BOC’s Macklem speaks at 2 pm ET (1900 GMT) in the follow up to yesterday’s BOC decision. The speeches are designed to fine tune the message after the meeting.
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