Saxo Bank: This week's data may affect the repricing of U.S. interest rates

According to Jin Shi reports, Charu Chanana, Chief Investment Strategist at Saxo Group, stated that the market views this week as a small "reset" of the U.S. macro narrative, with employment and inflation data set to be released in a very narrow window, which could quickly lead to a repricing of interest rates. The Federal Reserve cut rates last week and is expected to cut rates again in 2026, but the market anticipates at least two more rate cuts next year.

If the data is mixed or slightly weaker than expected, the soft landing narrative will remain unchanged, but this may not be enough to trigger a large-scale risk appetite rally. The real risk is a hawkish surprise; if inflation or employment data comes in hotter, yields will rise, and risk assets, especially long-term growth stocks, will be the first to be affected.