Beginning Of The End!

The last two weeks were one of the busiest as prominent Central Banks worldwide announced their monetary policies. There were some nasty surprises, and the markets across assets (FX and Bonds) were roiled.

Along with the CB decisions, a host of vital data was released demonstrating that there are emerging signs of bottoming out and inflationary pressures building, leading to market participants calling out for a stagflationary outcome.

Since January, there have been flip-flops around data due to varied reasons. While January had a tremendous seasonal effect, March was an outlier due to pessimism among consumers post the SVB fiasco.

Furthermore, early in the year, a consensus call was the bottoming out of the commodities due to optimism about the Chinese reopening. Nevertheless, commodities have been in a tight range, and the early rally in January and February might have influenced t…