View in your browser Could Housing Boom Drive Up Inflation in 2022? By Erik Norland, Senior Economist Ayushman Mukherjee, Intern CME Group Housing costs falling behind consumer price index for first time in a decade. Surge in home prices could lead to higher rent through end of 2022. Higher home rentals could add 1.5 percentage … Read More
Tapering Impact on FX, Gold; High Credit Scores Drive Housing
View in your browser Tapering Impact on FX, Gold; High Credit Scores Drive Housing By Blu Putnam, Chief Economist Erik Norland, Senior Economist CME Group FX, Gold Market Volatility Could Rise With Tapering U.S. jobs recovery could slow down in second half of 2021. Fed expected to stay on course to taper asset purchases by … Read More
How Technology Keeps Inflation at Bay
View in your browser Technology Can Keep Inflation at Bay By Blu Putnam, Chief Economist, CME Group Scaling Up Business Without Raising Output Costs Price hikes due to supply chain bottlenecks could ease in 12-18 months. Technology can help in boosting supply without raising production costs. Output cost could even fall as companies scale up … Read More
Will EUR/USD Volatility Snap Back?
Will EUR/USD Volatility Snap Back? By Erik Norland, Senior Economist, CME Group EURUSD Volatility Has Declined Sharply 30-day EUR/USD options implied volatility in 2021 is down sharply to 5%-6%. Implied volatility ranged from 5%-10% past few years, and 10%-15% before 2016. U.S. and eurozone budget deficits, inflation rates have diverged since pandemic. Widely traded EUR/USD … Read More
Inflation Dichotomy and Equities vs. Real Estate
View in your browser Inflation Dichotomy and Equities vs. Real Estate By Erik Norland, Senior Economist CME Group Surging Inflation Unique to U.S. U.S. core inflation at 4.5%, U.K. at below 2.5%, eurozone 1%. China’s inflation below pre-pandemic level at 1%, Japan at around zero. Massive U.S. fiscal spending led to a surge in consumer … Read More