All eyes on the Federal Reserve tomorrow
British retail sales volumes rose more than expected this month and at their fastest rate in more than two years. The Confederation of British Industry said its distributive trades survey's reported sales balance rose to +30 in January, marking a fresh 2-year high after December's reading of +25 and a forecast a reading of +14 and retailers' own expectations were for a reading of +4.
It seems that consumers will keep spending despite a higher cost of living and rising borrowing costs. To that extent the market is now pricing in the best part of another two interest rate rises.
The Nationwide UK housing index released this morning showed house prices rising at their slowest pace in 8 months at 0.3% on the month and the comment that we may see a weakening of demand as a result of stretched affordability and rising interest rates.
Interestingly we have consumer credit and mortgage data due for release this morning.
The two day US FOMC meeting starts today with the statement released at 19.15 GMT tomorrow. The market expects the Fed Funds rate to remain at 5.25% and the statement to offer a balanced outlook with the caution of downside risks to growth as the housing market cools.
The Chicago Fed Reserve Bank said yesterday that the Midwest manufacturing index rose in December as the auto and machinery sectors put in a stronger showing. This afternoon sees the release of US consumer confidence.
The Japanese Yen has been a currency of interest as it continues to weaken against the USD. Weaker household spending and a slightly higher jobless rate in December have again dampened the prospect of a rate rise by the Bank of Japan as concerns continue over the strength of consumption.
On the other hand, industrial output rose by more than expected, highlighting the strength of the corporate sector.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
It seems that consumers will keep spending despite a higher cost of living and rising borrowing costs. To that extent the market is now pricing in the best part of another two interest rate rises.
The Nationwide UK housing index released this morning showed house prices rising at their slowest pace in 8 months at 0.3% on the month and the comment that we may see a weakening of demand as a result of stretched affordability and rising interest rates.
Interestingly we have consumer credit and mortgage data due for release this morning.
The two day US FOMC meeting starts today with the statement released at 19.15 GMT tomorrow. The market expects the Fed Funds rate to remain at 5.25% and the statement to offer a balanced outlook with the caution of downside risks to growth as the housing market cools.
The Chicago Fed Reserve Bank said yesterday that the Midwest manufacturing index rose in December as the auto and machinery sectors put in a stronger showing. This afternoon sees the release of US consumer confidence.
The Japanese Yen has been a currency of interest as it continues to weaken against the USD. Weaker household spending and a slightly higher jobless rate in December have again dampened the prospect of a rate rise by the Bank of Japan as concerns continue over the strength of consumption.
On the other hand, industrial output rose by more than expected, highlighting the strength of the corporate sector.
The contents of this blog are for information purposes only. It is not intended as a recommendation to trade or a solicitation for funds. The Wise Money Blog cannot be held responsible for any loss or damages arising from any action taken following consideration of this information.
posted by Wise Money @ 2:53 PM
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