Federal Reserve Day
UK consumer credit and mortgage data came in higher in December. Mortgage approvals showed their weakest rise since April and came in lower than expected. Mortgage lending rose in December above market forecasts.
Sterling saw a rapid rise yesterday morning and this was rumoured to be largely due to the buying of Sterling-Yen for a merger and acquisition related transaction and we have subsequently seen profit taking overnight which has driven Sterling lower.
US consumer confidence edged higher in January. The Conference Board index rose to 110.30 from an upwardly revised 110 in December. The increase was a result of a more favourable job market component.
The FOMC decision is expected to yield an on hold result leaving interest rates at 5.25% and continued rhetoric about inflation risks and the housing market with recent economic data pointing to an economy that is pointing in a stronger than expected performance.
The Euro fell against the Yen as German Finance Minister Peer Steinbrueck said G7 officials would discuss the recent rise at their meeting next week as well as exchange rates in general.
Interestingly German CPI numbers from the six federal states showed that the pass through effect of the VAT increase may be lower than expected. Meanwhile the French jobless rate released this morning fell to 8.6% in December, the lowest level since June 2001.
A word on oil. Oil prices pulled back but remained over US$56 a barrel as cold weather hit the US and the market expects crude inventories to show a decline. Yesterday saw a jump of over 5% on Tuesday.
Some say that the spike was also caused by buying ahead of the scheduled February OPEC reduction in output of half a million barrels a day.
On the data front we have German unemployment, UK consumer confidence, US Q4 GDP, Chicago PMI and ADP employment report and of course the Fed announcement later tonight.
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.
Sterling saw a rapid rise yesterday morning and this was rumoured to be largely due to the buying of Sterling-Yen for a merger and acquisition related transaction and we have subsequently seen profit taking overnight which has driven Sterling lower.
US consumer confidence edged higher in January. The Conference Board index rose to 110.30 from an upwardly revised 110 in December. The increase was a result of a more favourable job market component.
The FOMC decision is expected to yield an on hold result leaving interest rates at 5.25% and continued rhetoric about inflation risks and the housing market with recent economic data pointing to an economy that is pointing in a stronger than expected performance.
The Euro fell against the Yen as German Finance Minister Peer Steinbrueck said G7 officials would discuss the recent rise at their meeting next week as well as exchange rates in general.
Interestingly German CPI numbers from the six federal states showed that the pass through effect of the VAT increase may be lower than expected. Meanwhile the French jobless rate released this morning fell to 8.6% in December, the lowest level since June 2001.
A word on oil. Oil prices pulled back but remained over US$56 a barrel as cold weather hit the US and the market expects crude inventories to show a decline. Yesterday saw a jump of over 5% on Tuesday.
Some say that the spike was also caused by buying ahead of the scheduled February OPEC reduction in output of half a million barrels a day.
On the data front we have German unemployment, UK consumer confidence, US Q4 GDP, Chicago PMI and ADP employment report and of course the Fed announcement later tonight.
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 @ 9:52 AM
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