Market awaits FOMC minutesJuly 09, 2014 Posted by: Pete Karabatos
The markets are awaiting the release of the FOMC minutes today for insights into the Fed’s sentiment on the economy and the timing of the first rate hike. In June the FOMC updated forecasts for unemployment, inflation, and the Fed Funds rate that indicated members were becoming more optimistic about the U.S. economic outlook. Today’s question is whether or not that optimism is translating into a more hawkish stance on Fed policy. The Fed has reduced their QE bond purchase program by $10 billion at each meeting since December. Any statement that brings forward the timing of anticipated rate hikes or draws the Fed’s quantitative easing program to an earlier than anticipated close would likely be a USD positive.
• U.K. home prices increased 2.3% in Q2 on economic improvements and rising consumer confidence.
• Bank of England deputy governor Shafik told lawmakers at Parliament’s Treasury Committee meeting that the U.K. economy is recovering at a “striking” pace and the growth in output and employment has been “surprisingly strong.”
• China’s producer prices fell in June by 2.3%, the slowest pace in more than 2 years.
• Portuguese debt securities sold off after a subsidiary of the Portugal’s second largest bank missed a bond payment.
• Greece has retained a group of investment banks to assist it in issuing 3 year debt securities.
07/09 EUR: France CPI (June)
07/09 AUD: Unemployment Rate (June)
07/09 JPY: Machine Orders (May)
07/09 JPY: Domestic CPI (June)
07/10 USD: Wholesale Inventories (June)
07/10 GBP: Bank of England Bank Rate
07/10 AUD: Home Loans (May)
07/10 CAD: New Housing Price (May)
07/11 GBP: Construction Output (May)
07/11 CAD: Unemployment Rate (June)
07/14 EUR: Eurozone Industrial Production (May)
07/14 CAD: Home Price Index (June)
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