Forex News
Weekly Economic & Financial Commentary
• The FOMC kept its current pace of asset purchases the same but signaled that it may begin tapering the pace of asset purchases later this year.
Morning FX Market Commentary
Dollar profits from higher yields and rising volatility The Fed’s policy assessment and negative news on China triggered a sell-off in risky assets with funds looking for shelter in the dollar.
UK retail sales rebound
The run of better than expected UK data has continued. After contracting over the previous 2 months, UK retail sales bounced strongly in May.
Euro area PMI: Weak growth driven by domestic demand
Today’s flash PMIs signal that the euro area is slowly returning to growth. Euro area manufacturing PMI increased to 49.5 from 48.3 and service to 48.6 from 47.2.
Norges Bank lowers key policy path, as we expected; 50% chance of a cut in Q3 this year
• Key policy rate unchanged, at 1.5%; path lowered by 0.45bp at the most
A Bumpy, But Creditable, Follow On
We can argue, till the cows come home, the many negatives and positives in today’s bumpy Q1 GDP result.
New Zealand Gross Domestic Product: QI 2013 growth disappoints
• GDP increased 0.3% in the March quarter, below our and market expectations
Bernanke: Stimulus reduction in 2013, to end in mid 2014
Interest rate increase would not occur anytime soon. However, Bernanke said the reduction represents unanimity between the Committee members.
FOMC: interest rate rise after 2014
The FOMC ended its two-day monetary policy meeting on Wednesday and agreed to keep its benchmark interest rate unchanged at a record low between 0.0% and
Core CPI up 0.2 percent in May, exactly as expected
• Core CPI inflation remained at 1.7 percent in May • Headline CPI inflation rose to 1.4 percent, from 1.1 percent in April
June Outlook for Borrowers
• The market has moved toward pricing our view of a first OCR hike in March 2014
TIC: Foreign Buyers Less Eager to Own Treasuries in April
Foreign private investors were net sellers of Treasury securities in April, as foreigners sold long-term securities at a faster pace than U.S. investors purchased them abroad.