Foreign Exchange Insights and Next Week
What’s "Normal" in the U.S. Economy, and Does Returning to Such Matter for the Dollar?
July 30, 2014
Today’s U.S. GDP data were considerably stronger than forecast and corroborate hopes that a sustained better performance is at hand. Real GDP has expanded at a 3.5% or better annualized rate in three of the past four quarters., and personal consumption grew at least 2.0% in those three quarters. On the other hand, year-over-year growth […] More
Central Bank Watch
FOMC Statement Makes No Radical Shifts and Draws a Dissenting Vote
July 30, 2014
The latest Federal Open Market Committee statement No longer calls the jobless rate “elevated” but asserts that other measures indicate “significant underutilizatrion of labor resources.” Notes that “inflation has moved somewhat closer to the Committee’s longer-run objective.” Also “judges that the likelihood of inflation running persistently below 2% has diminished somewhat.” Cuts monthly asset buying […] More
Central Bank Watch
FOMC Preview
July 30, 2014
A new policy statement will be released by the Federal Open Market Committee will be released at 14:00 EDT (18:00 GMT). The prior statement spoke about a post-1Q rebound of the economy, and this communique is likely to upgrade that trend further. Of particular note will be how the statement incorporates the changed nuance introduced […] More
New Overnight Developments Abroad - Daily Update
Wednesday Hinges on Three U.S. Releases
July 30, 2014
U.S. GDP is not expected to do more than reverse the first-quarter contraction, which would leave first-half growth flat. Annual data revision introduce extra uncertainty. The ADP estimate of private U.S. jobs growth in July will affect expectations of this Friday’s Labor Department monthly jobs report. At 18:00 GMT, the FOMC will release of the […] More
