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16 May 2014
US calendar takes centre stage on Friday – Danske Bank
FXStreet (Edinburgh) - While the euro docket is pretty thin today, data releases in the US economy will grab all the attention, according to Sverre Holbek, Senior Analyst at Danske Bank.
Key Quotes
“US economic data released yesterday was mixed. On a positive note, US initial jobless claims declined 24k to a seasonally adjusted 297k (320k expected, 319k prior week) last week. This marked the lowest reading since May 2007 and adds to evidence that the labour market is strengthening after the harsh winter”.
“In combination with yesterday’s inflation data which showed CPI rising 2.0% y/y in April and core CPI with 1.8%, this should provide comfort for the Fed to stay the course on tapering”.
“US industrial production was rather weak, declining 0.6% m/m in April (0.0% expected, +0.7% in March). However, the NY empire manufacturing index spiked to 19.0, and the Philly Fed remained at high levels, despite pulling back to 15.4”.
“Today’s data calendar is rather thin. In the US, the main focus will be on the release of housing starts and building permits for May as well as the release of the University of Michigan confidence indicator”.
“The housing market has been a point of weakness lately, as the soft trend in housing starts continued in March and building permits actually declined, and the severe weather conditions during the winter months do not seem to be the only depressing factor”.
“Recently Fed chair Yellen has noted the weakness in housing, and though the bar appears high for a pause in tapering, it will be interesting to see if the current weakness persists”.
Key Quotes
“US economic data released yesterday was mixed. On a positive note, US initial jobless claims declined 24k to a seasonally adjusted 297k (320k expected, 319k prior week) last week. This marked the lowest reading since May 2007 and adds to evidence that the labour market is strengthening after the harsh winter”.
“In combination with yesterday’s inflation data which showed CPI rising 2.0% y/y in April and core CPI with 1.8%, this should provide comfort for the Fed to stay the course on tapering”.
“US industrial production was rather weak, declining 0.6% m/m in April (0.0% expected, +0.7% in March). However, the NY empire manufacturing index spiked to 19.0, and the Philly Fed remained at high levels, despite pulling back to 15.4”.
“Today’s data calendar is rather thin. In the US, the main focus will be on the release of housing starts and building permits for May as well as the release of the University of Michigan confidence indicator”.
“The housing market has been a point of weakness lately, as the soft trend in housing starts continued in March and building permits actually declined, and the severe weather conditions during the winter months do not seem to be the only depressing factor”.
“Recently Fed chair Yellen has noted the weakness in housing, and though the bar appears high for a pause in tapering, it will be interesting to see if the current weakness persists”.