Deeper Analysis
FOMC Preview
June 13, 2018
The Federal Open Market Committee is widely expected to enact its second 25-basis point increase in the federal funds target of 2018 and the seventh since December 2015. That will bring the target ceiling to 2.0% for the first time since a cut in October 2008 just four weeks after the collapse of Lehman Brothers. […] More
Charlevoix G6 Summit Communique
June 10, 2018
Saturday’s statement from leaders of the Group of Seven had little to say about exchange rate policy and affirmed “the crucial role of a rules-based international trading system and continue to fight protectionism.” U.S. President Trump, who favors a Group of Eight including Russia as a more meaningful body than the Group of Seven, initially […] More
May PMI Results Point to Much Greater U.S. Advantage against Euro Area
June 5, 2018
The U.S. nonmanufacturing PMI, compiled by the Institute of Supply Management rose 1.8 to 58.6 in May, indicating a robust and considerably faster improvement in nonmanufacturing business conditions last month. The sales and prices indices increased by more than 2.0 points to pace the improvement. A U.S. services PMI, compiled by IHS Economics, was 2.2 […] More
Latest PMI Evidence on U.S. and Ezone Manufacturing Conditions
June 1, 2018
Even though the dollar posted its strongest monthly average in May since last November, the U.S. minus Euroland manufacturing purchasing managers indices swung 2.1 points further in favor of the United States. This created the most U.S.-advantageous differential since the end of 2014. The Institute of Supply Management’s U.S. PMI rose 1.4 points to a […] More
May in Figures
May 31, 2018
The dollar rose over 3% in May against the euro and sterling and by about 1% against the yuan and Canadian dollar but slipped fractionally relative to the yen, loonie and Australian dollar. Ten-year sovereign debt yields had risen in April but declined in May. Share prices rose in the U.K., Canada and United States, […] More
Italy’s Pre-Maastricht Days
May 17, 2018
A headline in today’s Financial Times reads “Italy’s populists pine for pre-euro times.” The recently established Five Star party and the right-wing League have been trying to form a government, and they have been openly considering desired measures to modify their relationship with other members of the European Monetary Union. The Maastricht Treaty signed in […] More
Non-Manufacturing U.S.-Minus-Euroland PMI Spread
May 5, 2018
The U.S. non-manufacturing purchasing index-minus-euro area services PMI was cut nearly in half to +2.1 in April, a three month low. The U.S. index dropped 2.0 points to 56.8, led by reductions of 1.5 and 3.0 points in sales/business activity and employment. Euroland’s services PMI fell just 0.2 points to 54.7. The Irish and French […] More
Convergence of U.S. and Euroland Manufacturing Operating Conditions Last Month
May 2, 2018
The rates of improvement in factory operating conditions slowed in April both in the United States and Euroland, but the U.S. deceleration was somewhat more pronounced. Hence, America enjoyed its smallest advantage relative to the euro area in three months. Declines of 3.8 points in the U.S. output sub-index and 3.1% in the U.S. jobs […] More
April in Figures
April 30, 2018
The dollar experienced its strongest month of 2018 in April, so naturally U.S. share prices under-performed equities in other countries. An upward grind in long-term interest rates continued and was considerably more pronounced in the United States and Canada than in Europe or Japan. Three-month interest rates rose slightly, except in Japan where such dipped […] More
U.S. Nonmanufacturing PMI Survey and Euroland Services PMI Survey Show Slower Rates of Expansion in March
April 5, 2018
The ISM-compiled U.S. non-manufacturing purchasing managers index slipped back 0.7 points to a 3-month low in March 0f 58.8, which was still very robust. Increases of 1.6 points in the employment sub-index and 0.5 points in prices mitigated declines of 5.3 points in orders and 2.2 points in sales. The IHS-compiled Euroland services PMI dropped […] More
