Tuesday, April 7, 2015

Fed speakers see economic weakness as only temporary

     Fed speakers see economic weakness as only temporary
    NY President Dudley (major dove) & Atlanta Fed President Lockhart both say the weak Q1 data was probably only temporary, caused by the bad weather like last year
    Fed funds rate expectations, US interest rates rebound; USD recovers
    Fed may push out the time of tightening somewhat, but it’s still headed to tighten

     CAD steady as oil rallies
    Bank of Canada business survey, Ivey PMI both weak
    But with oil prices rebounding, CAD remained stable vs USD

     RBA hold rates steady

     Today:
    Eurozone: Service-sector PMIs for March
    Sweden:  industrial production for Feb expected to decelerate = SEK-negative
    US: Job Opening and Labor Turnover Survey (JOLTS) forecast to show small increase in number of job openings = USD-bullish. Watch the “quit rate” too
    Japan:  Bank of Japan Policy Board meeting ends overnight. No change in tone expected. Market is waiting for the April 30th meeting, when new economic forecasts will be released

    Speakers:  Minneapolis Fed President Kocherlakota speaks

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