USD Weaker Today via Economic Reports...February 18, 2014 Posted by: Mark Noble
The USD is trading weaker versus the majors (ex JPY) after yesterday’s U.S. holiday. The yen is slightly weaker o/n after the Bank of Japan (BoJ) boosted its lending programs and said it will maintain the current monetary easing program in its attempt to fight local deflation. The weak USD mood is bolstered by this morning's NY Empire State manufacturing index, which unexpectedly fell to 4.48 in Feb. from 12.51 in Jan. Away from the USD, the pound lost ground vs. the euro after a U.K. inflation report slowed below the BoE’s target in January (1st time in more than four years). In the European timezone, comments from Bundesbank officials and earlier by the BoJ on future QE, looks consistent with the Fed’s expected reduction in its QE program, which is generally seen as a USD positive later in the year. China, the largest foreign buyer of U.S. debt, reduced its position in U.S. Treasuries by $47.8B (3.6%) to $1.27T (largest decline since Q4 '11).
• U.S. NAHB homebuilder sentiment sank to 46.0 Feb. vs. 56.0, weather is seen to blame
• NY Empire State index sank to 4.5 in Feb., below consensus @ 9.5 vs. 12.5 in Jan.
• U.S. TIC outflows hit $119.6B in Dec. vs. -$13B in Nov.
• Bundesbank officials indicated they might be open to ending its SMP bond purchase program later in the year
• German Feb. ZEW investor confidence unexpectedly dropped to 55.7 from 61.7
• U.K. Jan. CPI unexpectedly dipped to a new cycle low of 1.9% y/y
• Canadian portfolio data revealed foreign investors sold C$4.3B in Dec.
• NYMEX crude over $101/bbl via cold U.S. temperatures, high demand
02/25 EUR: German GDP, 2nd release (Q4)
02/25 USD: S&P Case-Shiller Home Price Index (DEC/Q4)
02/26 EUR: Gfk Consumer Confidence (Mar.)
02/26 USD: New Home Sales (Jan.)
02/27 EUR: Economic/Consumer/Industrial/Services Confidence Reports (Feb.)
02/27 USD: Durable Goods (Jan.)
02/28 EUR: Consumer Price Index (Feb.)
02/28 USD: GDP, 2nd release (Q4)
03/03 GBP: BoE Consumer Credit/Mortgage Lending Reports (Jan.)
03/03 USD: ISM, Mfg ...Read More