Multi-Asset Strategy Daily

The report highlights the Fed's constrained easing bias following CPI data and expectations for a 25bp ECB hike amid persistent energy shocks. Geopolitical tensions in the Middle East remain a key risk premium factor impacting global bond and energy markets.

Key Takeaways

• 1.US inflation data keeps the Fed in a holding pattern, unlikely to validate cuts while scaling back the easing bias.
• 2.The ECB is expected to hike by 25bp, focusing on persistent energy-driven inflation shocks.
• 3.Geopolitical risk in the Middle East is injecting fresh risk premium, capping rallies in US Treasuries.

Table of Contents

• USD
• EUR
• GBP
• JPY
• Important Information