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Week Ahead – Rate cut hopes rest on US jobs report and Eurozone flash CPI
video The worry is that cutting rates pre-emptively under such settings could refuel inflationary pressures. From the Fed’s perspective, the damage to its credibility would be greater in such a scenario than if it were to keep policy restrictive for longer than necessary. But for the markets, the base case of a soft landing is imperative to feeding risk appetite so any change to that outlook risks putting an end to the rally on Wall Street and possibly giving the US dollar a leg up. The best hope for investors therefore is that the incoming data will be neither too hot, nor too cold. Is the US labour market ... (full story)