Along with higher rate expectations in anticipation of the Federal Reserve eventually hiking rates, the market is also positioning for other events, like the European Central Bank easing.
“We’ve got the ECB meeting Jan. 22. The first week of January we get all of the European inflation data. That’s going to really set the tone,” Goncalves said in the article, arguging that the market sees a chance that the ECB could reveal a quantitative easing program.
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Max Chen contributed to this article.