Fed states accommodation remains warrantedMay 07, 2014 Posted by: Pete Karabatos
TheUSD is little changed in today’s trading. Fed Chair Janet Yellen’s dovish comments in prepared testimony for theJoint Economic Committee provides insight into the current FOMC thoughts about theeconomy. Yellen stated that “a highdegree of monetary accommodation remains warranted” and that “many Americanswho want a job are still unemployed”, indicating that the Fed is not stickingto a defined unemployment rate as a target for ending policy accommodation. Yellen’s remarks also cited the slowdown inhousing as well as “heightened geopolitical tensions” as economic risks.
•The Eurois trading at near seven-week highs in front of the ECB’s policy meeting. Economists expect rates to be left unchangedat 0.25%
• German factory orders unexpectedly fell by2.8% in March.
• China’s services PMI came in slightly belowexpectations at 51.4, showing modest growth.
• Canadianbuilding permits fell by 3.0% in March, much worse than the expected increaseof 4.0%
05/07 USD: ConsumerCredit (March)
05/08 EUR: ECB PolicyInterest Rate
05/08 USD: InitialJobless Claims (May 3)
05/09 GBP: Industrial Production (March)
05/09 CAD: UnemploymentRate (April)
05/12 CNY: Retail Sales(April)
05/12 USD: MonthlyBudget Statement (April)
05/13 EUR: ZEW EconomicGrowth Expectations Survey (May)
05/13 USD: Retail Sales(April)
FX Indications EUR 1.3923 GBP 1.6964 CAD 1.0891 JPY 101.76 CHF 0.8758 AUD 0.9338 RUB 35.0075 INR 60.04 CNY 6.2346 BRL 2.229 ILS 3.4511 ZAR 10.467 NZD 0.868 SEK 6.5013 Stock Indices Dow 16443 Nasdaq 4116.45 S&P 1878.5 FTSE 6798.56 DAX 9467.53 Nikkei 14457.5 Shanghai 2028.04 Commodities Oil 100.2 Gold 1307.34 U.S. Treasuries 2...Read More