Debt Agreement, Risk Rally, NFP to Make or Break the Party? | Weekly Market Wrap with Joe Jeffriess
Welcome to this week’s wrap-up. Unsurprisingly, the U.S. debt ceiling agreement took center stage as the primary concern in the market. Throughout the week, the bill made its way through the legislative process and ultimately passed, triggering notable reactions in risk markets from Thursday through to today.
As normal, I don’t think anyone truly thought the U.S. would default, but it is great that the bill has finally cleared, and this factor has been put to bed. EU and AU CPI data came in mixed during the week and added to the mix for the AUD and EUR.
Safe havens had a few decent pushes this week before the deal went through, and we saw risk markets run back into favour. Fed member comments still sound mixed on the U.S. Inflation situation, but hints remain we could see a hold in June. What will today’s NFP bring to the table? Hotter data could worry traders, but how hot is too hot? On the other hand, if we see weaker figures, is this a sure bet to keep the risk run going?
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We also have rate decisions from the RBA and BOC, and both banks are expected to hold rates steady.
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