Not all US indicators are positive: industrial production dropped by 0.1%, contrary to early expectations for a rise of 0.4%. The Capacity Utilization Rate also slips to 78.8%. Will this stop the greenback?
Well, EUR/USD is now on the rise from the lows and USD/JPY is sliding towards 107. However, most other currencies shrug this off.
Industrial output was expected to rise by 0.4% in August, matching the same rise seen in July, now revised to a rise of only 0.2%.. The capacity utilization rate carried predictions of standing at 79.3%.
Earlier, the Empire State Manufacturing Index beat expectations by a large margin, jumping from 14.7 to 27.5 against 16.4 predicted.
These are clearly second tier indicators. This week, the focus of US markets is on one single event: the Fed decision on Wednesday. This meeting consists of a press conference and is expected to show a 7th taper, the last one before QE comes to a full end in October.
In our latest podcast, we talk about the FOMC meeting.
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