Oil prices rose sharply over the weekend after more drama in the Red Sea and on signs of strong demand for oil from the US economy.
In part two of our bonus deep-dive interview on the euro’s 25th anniversary, ANZ’s Head of G3 Economics Brian Martin looks at whether the euro could ever supplant the US dollar as the global reserve currency.
5 things to know
Brent oil prices rose almost US$3/bbl over the weekend to an 8-week high of US$83.64/bbl after Houthis rocketed a Russian tanker and after strong economic growth data from the United States.
China’s bigger-than-expected monetary stimulus move last week also boosted the oil demand outlook. Officials in Beijing limited short selling of stocks over the weekend. ANZ Group Chief Economist Richard Yetsenga sees China’s growth slowdown as a natural adjustment.
Australian CPI inflation data on Wednesday is expected to end talk of a final RBA rate hike, says Richard.
The FOMC is expected to hold the Fed Funds Rate on Thursday morning. The debate is over when it will cut and just how soft the US landing will be.
South Korean GDP growth is expected to speed up this year from the 1.4% seen in 2023, largely because of improving chip exports, says ANZ Asia Economist Krystal Tan.
Cheers
Bernard
PS: Catch you tomorrow with a full preview of Australia’s CPI figures due on Wednesday.
