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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EXECUTIVE SUMMARY
- CPI inflation was in line with expectations for the second month running in January, at least in M/M terms with Y/Y figures beating but with survey responses potentially distorted after Friday’s BLS revisions.
- Those seasonal revisions left a pace of core CPI inflation hotter than first thought and it maintained this pace into January at 0.4% M/M.
- Further, details showed stronger than expected core goods inflation along with surprising breadth of inflationary pressures across a variety of measures.
- There was particular volatility across asset classes in the first 30 minutes, but the report ultimately drove a further significant leg in the post-payrolls higher for longer surge in FI markets whilst the DXY was more mixed but unwound earlier weakness.
- Markets price another two and a half hikes from current levels, something that most of the twenty analysts surveyed below don’t call for. There is still a long way to go until the next FOMC decision on Mar 22, including core PCE for Jan (likely higher than core CPI) plus nonfarm payrolls and CPI prints for February.
FULL REPORT INCLUDING SUMMARIES FROM 20 ANALYSTS HERE:
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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