FOMC Preview (All About the Projections)
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What’s in Today’s Report:
- FOMC Preview – All About the Projections
- NVDA Chart – Three Negative Technical Developments
- Economic Data Takeaways – Empire Survey and PMIs “Goldilocks Enough”
Futures are moderately lower as mostly strong international economic data overnight is putting upward pressure on global bond yields as focus turns to this week’s central bank decisions, including the Fed tomorrow.
Economically, Germany’s December Ifo Survey was mixed with Current Conditions edging up to 85.1 vs. (E) 83.8 but Business Expectations declined to 84.4 vs. (E) 87.0 while UK wage growth jumped 5.2% y/y vs. (E) 4.6% which sent Gilt yields higher.
Today, trader focus will be on economic data early with Retail Sales (E: 0.5%), Industrial Production (E: 0.3%) and the Housing Market Index (E: 47) all due to be released.
However, with the FOMC meeting getting underway in Washington, market moves are likely to be limited (barring any material surprises) as a familiar sense of “Fed-Paralysis” is likely to begin gripping the market with tomorrow’s FOMC decision looming.
Finally, there is a 20-Yr Treasury Bond auction at 1:00 p.m. ET that has the potential to move yields and impact equity market trading but odds of that happening ahead of the Fed announcement tomorrow are relatively low.
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