Fed Decision TodayDecember 18, 2013 Posted by: Joe O'Leary
The Federal Reserve could signal the start of the U.S. central bank's withdrawal of its economic stimulus today(11am PST). U.S. housing starts surged to their highest level in nearly six years in November, a sign of strength in the housing market that could give the Federal Reserve ammunition to start cutting back its bond purchases. The GBP jumped against the dollar and euro on Wednesday after UK unemployment fell by more than expected, raising expectations that interest rates could rise earlier than previously forecast. The BoE said in its forward guidance in August that it would not consider raising rates until unemployment fell below 7 percent, something it expected to happen by the end of 2016. But last month it said unemployment could hit 7 percent as early as the fourth quarter of 2014. The Canadian dollar weakened against the USD on Wednesday amid investor caution ahead of a statement from the Federal Reserve later in the day.
• U.S. housing starts surged 22.7% to 1.09 mln in Nov 873k in September, 889k in October and 1,091k in November.
• Canadian wholesale sales surged 1.4% in October (m/m), easily outpacing projections for a smaller rise (median +0.3%) after a revised flat reading in September (was +0.2%).
• U.K. unemployment unexpectedly dove to 7.4% in October, the lowest since the first half of 2009, while claimants dropped 36.7k in November.
• The Reserve Bank of India unexpectedly refrained from raising interest rates. They let the repurchase rate at 7.75%.
• U.K. CPI unexpectedly dipped to 2.1% y/y in November, down from 2.2% y/y in October
12/19 GBP: Retail Sales (Nov.)
12/19 USD: Existing Home Sales (Nov.)
12/19 USD: Leading Index (Nov.)
12/20 USD: GDP 3Q
12/20 EUR: Consumer Confidence (Dec.)
12/20 GBP: UK GDP (Q3)
12/20 CAD: CPI (Nov.)
12/23 CAD: Retail Sales (Nov.)
12/23 EUR: Consumer Confidence (Dec.)
12/24 USD: New Home Sales (Nov)
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