• Amid a large consensus that the rate hike cycle has ended, markets are now trying to assess the timing of the next rate cuts.
  • Together with inflation numbers, labour market developments will be key to the next Fed decisions.
  • Inflation figures this week surprised on the upside, signaling that the disinflation process is slower than expected by the market.

Actionable ideas

  • Money Markets
    With the Fed expected to remain in pause until Q2, money markets in our opinion continue to offer appealing yields for investors.

  • Flexible Fixed Income
    Approaching the turning point in the Fed rate policy, longer term bonds are set to benefit. However, as January 2024 is proving, the path will not be linear and therefore a flexible approach is key.

Key Dates

17 Jan

China Q4 GDP growth

 

17 Jan

Euro area HCPI

 

19 Jan

USA Univ. of Michigan Consumer Sentiment Index

Read More