Limited movement among most of the G10 curren-cies points to an ongoing assessment of the outlook for global growth and relative monetary policy, with the broader market tone also sugges-tive of consolidation as equity futures and U.S. yields attempt a near term stabilization. AUD, NZD, and JPY are outperforming as they retrace from their recent lows, while GBP, CAD and EUR are flat vs the USD. Commodities appear most vulnerable, as copper and oil flirt with new medium-term lows. A disappointing IFO sentiment release from Germa-ny (middle chart) has failed to provide for much movement, as market participants had likely already shifted their expectations following the deterioration in ZEW and PMI indicators. Releases through the NA ses-sion are limited, with new home sales expected to show a modest gain to 430K. In terms of Fed speakers, we will hear the first post-FOMC com-ments from Mester and Evans. In the past, Mester (voting 2014, non-voting 2015) has expressed a desire to maintain policy flexibility, sug-gesting that she may sympathize with Fisher and Plosser’s views on for-ward guidance. For Evans (dove, non-voting 2014, voting 2015) his key-note speech at a conference on labor market slack will be important in outlining his views as we look to the composition of voting members for 2015.
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