Thursday, January 29, 2015

FOMC stays pat

•     FOMC stays pat
–    Its view of the US economy, including labor market, improved
–    But it thought it might take longer for inflation to come back to 2%
–    No change in tightening bias = USD-supportive
•     RBNZ turns dovish
–    Switches from tightening bias to neutral with the possibility that the next move in rates is lower
–    Worried about downside risks to economy, still complaining about the strength of NZD
–    Watch for next week’s RBA meeting
•     Greek problems still can roil EUR more
–    Greek stocks down 9% yesterday, 3-year bond yields up 275 bps
–    Next pressure point is Feb. 5th, when Parliament reconvenes
•     Today:
–    Eurozone: German CPI for January should slip into deflation = Eur-negative; Eurozone M3 money supply

–     US: Weekly jobless claims, pending home sales

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