Post Tagged with: "Producer Price Index"

Yellen’s speech sends dollar down

Dovish undertones in Federal Reserve Chair Yellen’s first monetary policy speech reverberated through markets and have led the dollar lower against its peers with the dollar index declining 0.25% at time of writing to 79.63.  Yellen renewed the Fed’s pledge to maintain an accommodative stance until such time that the central bank is confident that the US economy has been nursed to full health – with particular focus on the labor market and inflation.  Although, the current unemployment rate is at 6.7%, the labor market remains weak in their perspective – especially when taking into account individuals who have been forced to accept part time positions as full time work was not available; the proportion of the population that has dropped out of the work force entirely; and the still-sizable ranks of the long term unemployed.   Yellen acknowledged that like its European counterpart, the Federal Reserve continues to assess the threat of low inflation as it persists under its target rate of 2% and will ensure that any tightening of policy will not allow inflation to “overshoot” as it will “be very costly to reverse.”

A decline in consumer spending due to the recent sales tax raise hike from 5% to 8%, coupled with a slowdown in housing construction has led the Japanese government to downgrade its assessment of the economy for the first time since 2012.  This shift comes a week after the Bank of Japan maintained its rosy view that the economy was recovering at a moderate pace and commitment to maintain QE until such time that the inflation target of 2% was attained.

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Forex Daily Outlook – June 6 2011

Forex Daily Outlook – June 6 2011

We start the week with several interesting speeches in the US and Producer Price Index in Europe the main highlight on today’s outlook. Let’s see what awaits us today. In the US, we anticipate some interesting speeches: Timothy Geithner, Secretary of the US Department of Treasury, Charles I. Plosser, President  & Chief Executive Officer and [&hellip

Forex Daily Outlook – May 20 2011

Forex Daily Outlook – May 20 2011

  CPI in Canada and Producer Price Index in Europe are the major events this day. Here is an outlook on the market-movers awaiting us. In Canada, Bank of Canada CPI (Consumer price index) measures the cost of living by comparing basket of goods and services including volatile components, is likely to reduce by 0.6% [&hellip

Forex Daily Outlook – April 21 2010

Forex Daily Outlook – April 21 2010

US Philadelphia Fed Manufacturing Index , House Price Index and Unemployment Claims are the major market-movers. Let see what awaits us today. In the US, Philadelphia Fed Manufacturing Index based on a survey of manufacturers regarding trends in their business activities and growth a major indicator of business conditions expanded to 43.4 in March following [&hellip

Forex Daily Analysis – June 20th 2008

The British pound leaped 50 pips after the retail sales surged higher surprisingly. The market had expected a 0.1 drop, and was surprised to hear about a whooping 3.5 percent, the highest in 22 years. In Switzerland, the central bank met expectations by keeping the interest rate at 2.75%. The decision came despite inflation worries. [&hellip