The sell-off in the Dollar started overnight after rumors of conflict between the United States and Iran. It suffered its biggest slide against the Yen in two weeks on Wednesday after Federal Reserve Chairman Ben Bernanke suggested a slowing housing market has clouded the US economic outlook but likely to be contained. Euro-zone M3 money supply growth provides further evidence that the ECB will continue to see upside risks to inflation from the money supply and that at least one hike in interest rates to 4% remains likely due for June. US durable goods orders rebounded by 2.5% in February and (more…)
US GDP report showed the US economy may be more resilient than many initially thought and supported growing expectations the Federal Reserve may hold interest rates steady for some time. Fed Chairman Bernanke gave on Wednesday’s statement a more balanced view of the US economy. He acknowledged risks from the weak housing market, but confirmed that inflationary pressure remains. The market interpreted that to mean the Fed is not ready to reduce US interest rates just yet. US government on Thursday said it remains committed to pursuing a diplomatic resolution of tension in the Middle East, which (more…)
The Dollar fell against most major currencies on Monday after February US New Home Sales data dropped to the lowest rate since June 2000, boosting expectations of a Federal Reserve interest rate cut. This apparent collapse in New Home Sales to only 848k in February, from 882k (revised down from 937k) in January and 1′047k in December, seems to suggest that the housing market has gone into free fall again. The data renewed some fears that weakness in the sub-prime mortgage market could undermine the broader housing market and other economic sectors. Market awaits Fed Chairman Ben Bernanke’ cong (more…)
US consumer confidence dropped back from a five-year high in March, The headline confidence index fell to 107.2, from a revised 111.2, (previously 112.5). Consensus was 108.5. Conference Board’s measure is still at a relatively high level compared to the University of Michigan series, which has fallen sharply since the start of the year. German business Confidence survey, 107.7 vs 107, reinforced expectations that Euro-zone rates are heading higher. Consensus was 106.5. ECB’s Garganas said Euro-zone rates do not seem to have peaked and the ECB may need to act of upside inflation risks appear. (more…)
