All Articles Tagged - Fed

Mixed US jobs report fails to deliver decisive rate hike case for Fed

Posted on September 7, 2015 at 11:59 am GMT

US nonfarm payrolls rose by 173,000 in August – the slowest pace in five months and below consensus estimates of a gain of 220,000. However, upward revision to previous months’ numbers revealed that jobs growth has been stronger than initially estimated, leading to a drop in the unemployment rate to 5.1% from 5.3% in July. This takes the unemployment rate to the lowest level since April 2008. But the drop in the unemployment rate looks less impressive when considering the [..]

US consumer spending rises less than expected; Core PCE eases in July

Posted on August 28, 2015 at 2:06 pm GMT

US personal consumption expenditure (PCE) rose by less than expected in July, increasing by 0.3% in July from the previous month. This was below estimates of 0.4% but there was upward revision to previous months’ numbers. The figure, while slightly below expectations, shows that consumer spending in the US is continuing to recover after a patchy 2014. There was a large jump in purchases for durable goods, which climbed by 1.3% in July versus a fall of 0.9% in the [..]

Week Ahead – RBA and ECB meetings, final US payrolls before Fed September meeting in focus

Posted on August 28, 2015 at 12:09 pm GMT

The first week of September sees the European Central Bank (ECB) and the Reserve Bank of Australia (RBA) meet for their latest monetary policy meetings. After a busy week of numbers for the US, the main US data that will be high on investors watch is the August payrolls data, which will be the final set before the FOMC meets later in the month. ECB’s Governing Council is to hold its latest monetary policy meeting on Thursday, which will be [..]

Dollar up as US Q2 GDP revised higher by more than expected to 3.7%

Posted on August 27, 2015 at 2:25 pm GMT

US GDP growth for the second quarter was revised higher to 3.7% from 2.3% in the initial estimate. Consensus estimates were for GDP to be revised to 3.2%. The upward revision to second quarter growth comes after first quarter growth was also revised higher to 0.6% back in July, suggesting the US economy has been more resilient in weathering transitory factors and weak global demand than initially anticipated. According to the US Bureau of Economic Analysis, the improved GDP numbers [..]

US inflation softer than expected; dollar bounces back after brief drop

Posted on August 19, 2015 at 2:13 pm GMT

US inflation showed little sign of accelerating in July as the annual rate of CPI rose by 0.2%, in-line with estimates and only slightly higher than June’s 0.1%. The month-on-month change was below estimates as prices rose by just 0.1%, the slowest rate since April, against forecasts of a 0.2% rise. The core CPI rate, which excludes food and energy items, held steady at 1.8%, which was within estimates. But the month-on-month rate came in at 0.1%, below forecasts of [..]

FX Daily Outlook

Posted on August 19, 2015 at 8:16 am GMT

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RBA reveals no surprises in minutes; awaits Fed’s decision

Posted on August 18, 2015 at 9:53 am GMT

The Reserve Bank of Australia’s meeting minutes from its August meeting went largely unnoticed on Tuesday as there were no major surprises in the minutes, with the cash rate kept unchanged at 2%. The RBA has adopted a less dovish tone in recent weeks as the Australian dollar has continued to extend its two-year decline against the US dollar, reaching a new 6-year low of 0.7214 on August 12. The central bank’s board had been keen to highlight for much [..]

Asian Session – Aussie down over 1% on yuan’s devaluation but dollar edges higher

Posted on August 11, 2015 at 7:48 am GMT

China’s central bank surprised the markets by devaluing the yuan on Tuesday as the Chinese government seeks to boost the country’s exports. The yuan, which can only fluctuate 2% from its fixed midpoint, was devalued by 1.9% and the midpoint lowered to 6.2288 per dollar from 6.1162 per dollar. The People’s Bank of China also changed the way it sets the midpoint, which will now be based on market makers’ quotes and the previous day’s closing price, making the currency [..]

European Session – Fed’s Fischer comments sends dollar lower; Brent crude bounces back above $49

Posted on August 10, 2015 at 2:34 pm GMT

With very little to detract investors on the data front, comments from Fed officials Stanley Fischer and Dennis Lockhart were the main currency movers on Monday. The dollar has been fluctuating since mid-European session as it rose ahead of Fischer’s interview but fell on remarks that inflation should move closer to normal levels before interest rates start to rise. It later headed higher and dropped back again as Atlanta Fed President Dennis Lockhart started his speech. Fed governor Stanley Fischer, [..]

Asian Session – Dollar steadier after jobs data; Weak China exports raises stimulus hopes

Posted on August 10, 2015 at 8:03 am GMT

The dollar stabilized after its brief surge on Friday that followed another set of robust jobs growth. Nonfarm payrolls for July were slightly below expectations at 215k but at above 200k, maintained the overall healthy pace of jobs growth seen over the past year. The greenback was mostly flat in Monday’s Asian trading and near Friday’s lows as the euro recovered to back above 1.09 dollars to 1.0963 dollars in late Asian session. Against the yen, the dollar was firmer, [..]

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