This post was originally published on this site. Yemen’s Iran-backed Houthis have completed the takeover of Bab el-Mandeb Strait after capturing strategic points in the Red Sea, according to the AFP. Bab el-Mandeb connects the Red Sea with the Gulf of Aden and provides a key maritime route between the Indian Ocean, the Suez Canal and Europe. Around 10% of global trade passes through this waterway. That leaves global energy flows facing pressure from both ends of the Arabian Peninsula. Iran’s disruption of Hormuz threatens the main route out of the Persian Gulf, while Houthi control of Bab el-Mandeb creates another...

This post was originally published on this site.The ranges of estimates are important in terms of market reaction because when the actual data deviates from the expectations, it creates a surprise effect. Another important input in market’s reaction is the distribution of forecasts. In fact, although we can have a range of estimates, most forecasts might be clustered on the upper bound of the range, so even if the data comes out inside the range of estimates but on the lower bound of the range, it can still create a surprise effect. CPI Y/Y 3.8% (4%) 3.5% (4%) 3.4% (67%)...