Macro Morning

Advertisement

By Chris Becker

The Brexit fallout continues in political circles, but markets are returning to the “everything will be fine” phase as Euro and Sterling rally against the USD, pushing up stock markets across both sides of the Atlantic. The lower almost benign volatility was helped by some solid releases overnight, with the spooked German attitude to inflation kept in check with a modest 0.3% CPI print for June (yoy) while in the US, personal consumption expenditure came in bang on target at a solid 1.6% yoy growth rate, in line with rising consumer confidence.

Not enough to warrant more tightening, but enough to warrant “everything is good” for traders to hit the buy button, in full knowledge that the combined Yellen/Draghi/Carney put, central bankers can end this destructive Brexit vote and bring order (profit) to the metamoney complex.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:
Cancel at any time through our billing provider, Stripe