Why Stocks Rallied Last Week (And Is It Sustainable?)
What’s in Today’s Report:
- Why Stocks Rallied Last Week (And Is It Sustainable?)
- Weekly Market Preview: Can Inflation Fall Quickly and Growth Stay Resilient?
- Weekly Economic Cheat Sheet: CPI Tomorrow is the Key Report
Futures are moderately higher as the U.S. Dollar extended Friday’s declines thanks to a hawkish ECB article.
The euro is surging another 1% and pushing the Dollar Index lower following a hawkish ECB Reuters article that stated the ECB may have to raise rates to 2% to curb inflation, which is higher than current expectations.
Economic data was slightly underwhelming as UK Industrial Production (0.1% vs. (E) 0.3%) and UK Monthly GDP (0.2% vs. (E) 0.4%) both missed estimates.
Today there are no notable economic reports nor any major Fed speakers, so we’d expect stocks to continue to follow the dollar ahead of tomorrow’s CPI report. If the dollar extends this morning’s declines, stocks should be able to hold this early rally.