It's not just HUMP day, It's FOMC day!

What's been going on?

Overnight we had some RBA news🦘

This type of rhetoric by a Central Bank is important to keep in eye on. With a CB like the RBA, they always have a close watch on the Chinese economy.

Putin

On the Russia/Ukraine war front lines, it seems there is potential for escalation from Mother Russia. In a news conference last week, Putin threatened escalation. Annexing parts of Ukraine could be a step to confirm this.

FOMC

Markets have been anticipating this event all week. Market expectations are the Fed will hike 75bps. Very slim chance of a 100bps move, but if Powell does deliver that it would send a pretty big shock to markets. In the July FOMC, the Fed mentioned of potential slower growth. Since the latest meeting, we have seen the US economy be fairly resilient despite previous hikes.

Cheers,

FS