November 27, 2013

From Monday’s close to 14:30 GMT on Wednesday, the dollar advanced against commodity-sensitive currencies like the Aussie dollar (0.9%), kiwi (0.8%) and loonie (0.3%) but fell 0.9% versus sterling, 0.7% relative to the Swiss franc and 0.6% against the euro.  The dollar is 0.3% firmer against the yen and unchanged relative to the yuan.

Sovereign debt yields are softer.

A deal to form a grand coalition in Germany (CDU/CSU/SPD) was reached two months after the election.  Merkel remains Chancellor.

Hungary’s central bank interest rate was cut another 20 basis points to 3.2% as expected.  Thailand’s key central bank rate was cut 25 basis points to 2.25% in an unexpected action to offset weaker than anticipated growth that’s been depressed by civil unrest.

Released Japanese data show 1) 0.8% on-year corporate goods price inflation, 2) an uptick of 0.3 points to 51.1 in small business sentiment, and 3) better-than-forecast consumer confidence.

U.S. housing data were reassuring.  According to Case Shiller-20, prices were 13.3% higher than a year before.  The on-year FHFA house price index gain was 8.5%.  In other data, the Richmond Fed manufacturing index rose 12 points to 13.  The Chicago Fed National Activity Index weakened by 0.36 points to -0.18.  Mortgage applications dipped again last week, and durable goods orders were hurt in October by the government shutdown, falling by 2.0%.  Jobless insurance claims fell to a low 316K last week.

From Euroland, the index of leading economic indicators went up 0.6% last month.  French consumer confidence ticked down a point to 84.  German consumer confidence printed .3 points higher at 7.4, best since November 2007.

Britain’s distributive trades index slid a point to 1.  3Q British GDP grew 0.8% from 2Q and 1.5% on year.

A Nor’easter continues to hit the New York area.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.


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