Macro and FX: Can the higher for longer narrative continue?

Last week ended with both equities and bonds lower following the Fed's hawkish message with rates staying higher for longer to deal with inflation and the strong economy which lifted the longer end of the US yield curve. This week key event risks to monitor are the UAW wage negotiations, gasoline prices and more jitter around a potential US government shutdown. US consumer confidence figures tomorrow are also key to track and on Friday the market will get the latest PCE inflation data. Across the Atlantic in Europe, the market will get Eurozone lending survey on Wednesday and the latest inflation figures from Wednesday to Friday. Finally, we talk about China and how Saxo's clients in the APAC region have positioned themselves for a rebound in the Chinese economy through a net positive positioning in Hong Kong equities, with Charu Chanana and Peter Garnry.
Read daily in-depth market updates from the Saxo Market Call and SaxoStrats Market Strategy Team here.
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