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Week Ahead: Book-Ended by Trump's Inauguration and the BOJ Rate Decision
There were four important macro developments to note in recent days. First, the recent string of US economic data was firmer than expected and GDP looks to have expanded close to 3% in Q4. With the help of guidance by Federal Reserve Waller, who is thought to be a possible successor to Chair Powell, played up the possibility of a cut in H1, and the market implemented the guidance and has next cut nearly priced in for the June FOMC meeting. Second, guidance by Bank of Japan officials makes a rate hike at the end of the coming week likely, barring fresh market turmoil. Third, the mini-meltdown in UK Gilts that saw a ... (full story)