Yesterday saw Gold and Bitcoin both hit record new highs, both dropping back overnight, but I am keen to understand what is happening and the answer lies with the inflation story meaning underlying assets are still cheap. Today is busy, we hear from Jay Powell as he gives semi-annual testimony to Congress and there is a UK budget, where Chancellor Hunt is expected to announce a 2p National Insurance cut.
Overnight we still waiting for the full results of Super Tuesday in the US, though it is clear Trump is gaining further momentum. On the data front Aussie Q4 GDP was in line with expectations at 0.2% in Q4 and 1.5% yoy. Later today we get German and UK construction PMIs ahead of MBA mortgage applications, the February ADP employment report (+150k is the expectation for the ADP survey), and the JOLTS job openings report for the USA. In Canada there is the Bank of Canada’s policy rate decision, where none of the economists surveyed by Bloomberg expect a change in the prevailing 5% rate. On the speaking front away from Jay Powell, we hear from Tiff Macklem at the BoC, and Mary Daly and Neel Kashkari from the Fed. The Fed will also be releasing the latest iteration of its Beige Book.
Market wise the yield on 10-year Treasuries was little changed at 4.15%, West Texas Intermediate crude rose 0.3% to $78.36 a barrel, Ether rose 5.4% to $3,713.78, Gold opens at $2130 per ounce whilst Cable is at 1.2710, USDJPY back below the 150 lvl at 149.50 and EURUSD at 1.0860.
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