Forex News
BOE MPC Divisions To Deepen As Stimulus Exit Nears
The Bank of England Monetary Policy Committee was not designed to achieve consensus, and cracks are appearing again after a period of harmony.
U.S. Consumers Reign Supreme in March
Personal income was strong in March, up 0.5 percent, with an upward revision to 0.4 percent in February. Personal consumption expenditures surpassed all expectations by posting a 0.9 percent increase
Dwelling Prices Edge Higher in April
RP Data-Rismark reported that Australian dwelling prices recorded a small, 0.3%, lift over April following a solid lift of2.3% in March.
FOMC statement: Economic activity has picked up recently
Not much to write home about with respect to the April FOMC statement. As widely expected, the FOMC continues to taper USD 10 billion and will now be buying bonds to the tune of USD 45 billion a month, starting in May.
US: economy stalled in Q1 but don’t extrapolate
The US economy unexpectedly stalled in Q1 as the bad weather exacted a toll on economic activity. The only positive thing to say is that the recent rebound in economic data suggests that we will see much stronger growth in remained of 2014.
Euro area: Inflation rebounds in April, ECB to stay put
The inflation rate increased to 0.7% (from 0.5%), enough in our view to keep the ECB away from providing more stimulus to the economy at the meeting next week.
ECB Noyer: Managing Euro An ‘Illusion’; Open To Other Measures
European Central Bank Governing Council member Christian Noyer said Wednesday that it was an “illusion” to think that the level of the euro could be managed but said he was open to additional liquidity measures.
BOJ: Japan Can Hit 2% Inflation Around FY15; Risks Balanced
The Bank of Japan board left its medium-term price outlook vague by saying the annual inflation rate will reach “around” 2% “around” the middle of its new three-year projection period,
Global Economic Conference Ponders Fed’s Future Mon Policies
As the Federal Reserve Board’s Open Market Committee holds two days of meetings this week in Washington, global business executives at the Milken Global Conference are carefully watching the words and
UK: Preliminary Q1 GDP slightly below expectations
GDP increased by 0.8% q/q in Q1 2014 which is somewhat below expectations as well as our forecast and the forecast by the Bank of England.
The neutral cash rate – lower than in previous cycles
Changes in productivity, the terms of trade, savings behaviour, fiscal policy, credit growth, lending margins and theexchange rate impact on the neutral cash rate.
Economy Watch – Strong Trade Supports Macro Metrics
There were few surprises in New Zealand’s merchandise trade figures for March. The data confirmed strong growth in two-way external trade, as well as a healthy trade surplus.