hemes

· General mood is “risk off”

· Fed’s Brainard: Inflation is much too high and subject to upside risks

· Fed’s Daly: We will be able to get inflation moving down by year-end

What’s Moving

Offshore trade opened with a Dollar offer, before hawkish comments from Fed’s Brainard saw a strong bounce emerge in the Dollar against all of the majors. This saw relatively wide ranges on the day, but markets finish with Dollar gains against the Euro and the Yen.

Data was largely a non-event over the day, coming in as expected, or being ignored.

Gold and oil both finished the day slightly weaker.

Thoughts

Expect another session of consolidation in Asia today, with the market sapped of clear directional cues in overnight trade. There is little on the event and data calendar locally today other than Chinese Caixin Services PMI, which is expected to come in at 49.6 from 50.2 last.