The American locomotive is not ready to slow down just yet

Little macroeconomic data from the eurozone this week and confirmation that the US cycle continues to dominate the world stage. While the situation gives the Fed some leeway, the ECB’s central bankers remain cautious, stressing the importance of wages in determining the timing of the first rate cut in the face of still-fragile activity. Quite logically, the context favours the dollar and risky assets, supported by the dynamism and exceptionalism of the United States, particularly vis-à-vis China. Investor appetite for eurozone sovereign debt and US Treasuries is undiminished, but remains under recurring pressure from central bank pricing.