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The dollar firmed further in early N.Y. trade on Thursday, adding modestly to gains posted after the FOMC on Wednesday. As Wall Street turned higher however, and Treasury yields peaked out and subsided some, the dollar and the yen came off their best levels through the remainder of the session. Read more
It appears that the soft patch the economy hit in December and January may have ended. Of the four primary series measuring production (blue in the graph below), real sales (green), jobs (red), and real income (orange), all but jobs declined in both December and January: But as the graph shows, industrial production, jobs, and real sales have all risen in February. Read more
The USD extended higher against the EUR and some other currencies during the European AM session after pausing the post-FOMC rally during Asia. EUR-USD led the way, dropping to a two-week low of 1.3762, which is nearly 50 pips under yesterday's New York closing low. Read more
Monthly news for February was highlighted by the employment report, with a moderate increase in jobs and wages, but a decline in hours and an increase in the unemployment rate. ISM manufacturing was up, but services were down to a multiyear low, although they still showed expansion. Read more
The USD has consolidated modestly lower after surging across-the-board on the FOMC, after Fed boss Yellen said there will be about a six-month period between the time when the Fed's bond buying program ends (late this year) and when the first rate hike will be seen. Read more
There are already many commentaries regarding Chairman Yellen's first Federal Reserve press conference. I simply want to highlight a point that will probably be overlooked: the heightened deflationary threat to the US. Consider the second paragraph from the Fed's policy announcement: Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. Read more
FX trade was very light in the lead up to the FOMC announcement, with major dollar pairings idling inside of familiar ranges. EUR-USD travelled a 1.3900-25 band, while USD-JPY traded 101.50-60. USD-CAD was bid up in early dealings, posting a 1.1199 peak, keeping 1.1200 barrier options intact. Read more
Sterling outperformed following solid U.K. data, the CNY sank to fresh lows, while the USD traded moderately firmer against most of the other main currencies, with most pairings remaining well within their respective Tuesday ranges. EUR-USD saw a low of 1.3904 before settling around 1.3920. Read more
The CNY made fresh lows while the USD majors posted inside ranges in uneventful trade as market participants sat on their collective hands ahead of the FOMC. The yuan dropped below 6.2000 for the first time since last April after the PBoC cut the reference rate to 6.1351, with the currency trading just over 1% below here, the biggest gap since 2007 (after the PBoC doubled the maximum daily trading band to 2% this week). Read more
The dollar was firmer versus the European majors in N.Y. trade on Tuesday, though lost modest ground to the yen. Equities rallied as Putin said he did not want to tangle with the West, and had no ambitions to invade the remainder of the Ukraine. Wall Street appeared to take him at his word, though oil rallied over $1/bbl, even as gold slipped back for the second day. Read more
, real sales (green), jobs (red), and real income (orange), all but jobs declined in both December and January:
But as the graph shows, industrial production, jobs, and real sales have all risen in February.&p[images][0]=/system/files/styles/large/s3/image_64.jpg?itok=WDTfIJmb){kind=link}
