Welcome to Extreme Investor Network, where we provide unique insights and analysis on the latest trends and developments in the stock market, trading, and Wall Street. Today, we will be discussing the recent movements in the OIS curve, as well as highlighting key events from the Bank of Canada and the Reserve Bank of New Zealand.
As of the latest update, the OIS curve is pricing in -81bps of easing for the year, showing a slight decrease from the previous level of -91bps. This indicates market expectations for potential rate cuts in the near future.
Last week, both the Bank of Canada (BoC) and the Reserve Bank of New Zealand (RBNZ) made headlines by keeping rates steady for the sixth consecutive meeting. While this was widely anticipated by markets and economists, there were key takeaways from their statements.
The BoC mentioned they need further evidence of slowing inflation before considering rate cuts, but hinted that they are nearing the point where cuts could be on the table. On the other hand, the RBNZ maintained a more hawkish tone, stating that policy would remain restrictive in the near term due to inflation remaining above target.
Looking ahead, the focus in the UK will be on upcoming data releases such as wage/employment numbers, CPI inflation, and retail sales data. Market expectations for the Bank of England (BoE) have shifted, with a 25bp cut now fully priced in for September’s meeting, but July still remains a possibility. This follows recent comments by BoE officials indicating a potential need for rate cuts in the future.
In the US, retail sales figures and regional manufacturing data will be key highlights for the week. Expectations for retail sales indicate a slight increase for March, while Canadian CPI inflation numbers will also be closely watched following the BoC’s decision to hold rates steady.
At Extreme Investor Network, we provide expert analysis and insights to help you navigate the fast-paced world of finance and investing. Stay tuned for more updates and valuable information to enhance your trading experience.
