With no major data releases scheduled today the focus will really be on USD and the events of the US session yesterday. A 0.7% rise in US retail sales (excluding vehicles) and a 0.4% rise in November business inventories, combined with an upward revision to October inventories led to some upward revisions to US Q4 GDP. Fed speakers Plosser and Fisher also made speeches arguing that without the swift elimination of asset purchases, inflation risks would rise again. There is also concern that rising house prices will feed through to core inflation. As such, the argument for further/more rapid reduction in stimulus is mounting. This will result in a stronger US Dollar. The next FOMC meeting (when the next round of tapering could be confirmed/announced will be Wednesday 29th Jan).
Posted in Daily Market News on May 30 2014
Friday nonfarm payrolls came in way below expectations, in fact, payrolls only rose by 74K rather than the expected 175k. Although this still represents an improvement for the US economy, it also means that better figures were priced in and so we saw a price adjustment with USD falling across...VIEW FULL ARTICLE
Posted in Daily Market News on Jan 13 2014 by admin