Founders: The Globe Starts to Digest Inflation
Good morning:
Not a lot on topic this week. What is out there is very Eurocentric today. The British pound, which had been getting slaughtered due to an inability to quell inflation is now stabilizing. If it strengthens that could put a ding in Gold’s rally. In fact given this is all from inflationary fears in the EU backing off, that could be a small headwind. Market should shake it off however.
One other thing. You are going to start seeing more CRE defaults now. Do not expect things to react as they did at first when the whole thing was tied to banks going under. This is already in the market. It is not a reason to buy Gold this time around. The Fed ending tightening is however.
Today:
TS: British inflation
Citi- on Dollar markets
GSTrader: Markets
GSTrader: Morning Email
RABO: Daily Comment
ING: GBP repricing risk
Have a good one