Key Insight into Japan’s Manufacturing PMI in October
Japan’s manufacturing PMI stood at 52.8 in October 2017, compared with 52.90 in September 2017, and beat the preliminary market estimation of 52.5.
Macroeconomic Analysis
3.2 Million Americans Quit Their Jobs in September
As per the latest JOLTS report, about 3.2 million American workers quit their jobs voluntarily in September.
Did Job Openings Rise in September?
The Job Openings and Labor Turnover Survey (or JOLTS) report for September came out on November 7. Job openings remained unchanged at 6.1 million as of the last business day in September.
Why the Euro Is Likely to Remain Quiet this Week
The euro-dollar pair (FXE) closed the week ending November 3 at 1.1609 against the US dollar (UUP). Worries about a possible escalation of tensions in Spain’s Catalonia region proved futile.
US Dollar Survived Dovish FOMC Statement, Lackluster Jobs Report
The US dollar index (UUP) remained supported last week despite a dovish FOMC statement and a lower-than-expected rise in monthly non-farm payrolls.
Why the British Pound Fell—Despite the Bank of England’s Rate Hike
The British pound depreciated 1.41% against the US dollar after the policy statement from the BOE (Bank of England) on November 2.
Why the Bank of England Wants Inflation to Fall
The central bank said that the key reason for such sharp increase in prices was due to the depreciation of the British pound after the Brexit referendum.
Japanese Yen Is Expected to Depreciate More
Since the Japanese election results, the Japanese yen has depreciated. The Bank of Japan is expected to continue the accommodative policy.
Why the Recent Election Results Are Positive for Japan
Japanese Prime Minister Shinzo Abe’s call for an early election worked in his favor. He called for a snap election to take advantage of his high ratings.
Bank of Japan Thinks the Inflation Target Can Be Achieved by 2019
For Japan’s economy, the main struggle has been the low level of inflation. Japan’s inflation has been low for the past three decades.
Bank of Japan: No Changes in the October Policy Meeting
At its October policy meeting, the Bank of Japan left its ultra-loose monetary policy unchanged. The decision was made by an 8-1 majority vote.
Janet Yellen: A Key Question for the Future
In a speech at the 2017 Herbert Stein Memorial Lecture, Fed Chair Janet Yellen shared her thoughts on monetary policy for the future and discussed whether there will be any role for unconventional policy again.
Janet Yellen Balance Sheet Strategy a Closer Look
Fed Chair Janet Yellen, in her speech at the 2017 Herbert Stein Memorial Lecture, offered some more insight into the Fed’s balance sheet reducing strategy.
Eurozone Inflation Is Improving: Why Is ECB Still Dovish?
On a year-over-year basis, the Eurozone Inflation (VGK) (IEV) (EZU) Index stood at 1.5% in September 2017, the same as in August 2017.
UK’s Inflation Was at 0.3%: How Will It Affect the Economy?
According to the report provided by the Office for National Statistics, on a monthly basis, the United Kingdom’s inflation index stood at 0.3% in September 2017 as compared to a 0.6% improvement in August 2017.
These Major Economic Indicators Were Released Last Week
In this series, we’ll analyze the performance of the Eurozone Consumer Confidence Index and the ZEW Economic Sentiment Index in October 2017.
Analyzing the European Central Bank’s October Statement
The reduction to the ECB’s bond-buying program will likely have a mixed impact on the bond markets of countries in the European Union.
Why the ECB Isn’t Worried about the Appreciating Euro
In the ECB’s (European Central Bank) October policy meeting, the ECB didn’t explicitly talk about the appreciating euro.
What’s behind the European Central Bank’s Normalization Plans?
Economic growth has picked up in recent quarters. According to data from Eurostat, the European economy (VGK) grew 2.3% in the recent quarter.
Update from the European Central Bank’s October Policy Statement
In the ECB’s (European Central Bank) October policy meeting, its laid out its plans for the QE (quantitative easing) program.
How Political Drama and ECB’s Dovish Statement Affected the Euro
The euro-dollar (FXE) pair closed the week ending October 27 at 1.16 against the US dollar (UUP).
How the US Dollar Could React to November FOMC Meeting
The US Dollar Index (UUP) continued its ascent last week.
Why Expectations for Business Conditions Fell 50% in September
The October Conference Board LEI reported that average consumer expectations for business conditions for September are 0.37 above the mean.
Understanding the Leading Credit Index for September 2017
The Leading Credit Index is an economic model that’s modeled on the performance of six major financial market instruments.
Are Declining Yield Spread Worries Done for Now?
At the last FOMC (Federal Open Market Committee) meeting on September 20, 2017, Fed members decided to initiate a balance sheet normalization process starting in October.
Does China’s Consumer Confidence Signal Better Conditions?
According to a report provided by the National Bureau of Statistics of China, the consumer confidence index for China stood at 114.7 in August 2017 compared to 114.6 in July.
China’s Inflation Is Improving: Are Consumers More Selective?
According to a report provided by the National Bureau of Statistics of China, China’s inflation index improved 0.50% in September 2017 compared to a 0.40% rise in August 2017.
A Look at the Possible Effects of Balance Sheet Unwinding
The US Fed has amassed a huge number of fixed income (BND) securities as part of its quantitative easing (or QE) programs 1, 2, and 3.
Why the Fed Has Initiated Balance Sheet Normalization
Atlanta Federal Reserve president and CEO, Raphael Bostic, recently spoke at a conference about the Fed’s balance sheet normalization program.
China’s GDP at 6.8% in 3Q17: What’s Affecting Economic Growth?
China’s GDP grew at an annualized rate of 6.8% in 3Q17 and met the market expectation. The economy expanded at an annualized rate of 6.9% in the first two quarters of 2017.
Why the Euro’s Troubles Could Continue This Week
The euro-dollar (FXE) closed the week ending October 20 at 1.179 against the US dollar (UUP).
What to Expect from the US Dollar This Week
The US Dollar Index (UUP) has bounced back from the shallow low that it saw the previous week.
Is the Drop in September Building Permits Cause for Concern?
In September 2017, building permits were at a seasonally adjusted annual rate of 1.215 million—a fall from August’s 1.272 million and 4.3% below September 2016.
Russia’s Services PMI Improves: A Stronger Business Climate?
The final Russia Services PMI (Purchasing Managers’ Index) was 55.2 in September 2017 compared to 54.2 in August 2017.
What Helped Brazil’s Services PMI Rise So Much in September?
The final Brazil Services PMI (Purchasing Managers’ Index) stood at 50.7 in September 2017 compared to 49.0 in August.
Insights into Brazil’s Manufacturing PMI in September 2017
The final Markit Brazil Manufacturing PMI (Purchasing Managers’ Index) stood at 50.9 in September 2017. It remained unchanged compared to August 2017.
Which Industries Increased Production Last Month?
The Federal Reserve released its September industrial production report on October 17. The report indicated that key sectors in the US economy increased production in September.
Why India’s Services PMI Expanded in September
The final Markit India Services PMI (Purchasing Managers’ Index) stood at 50.7 in September 2017 compared to 47.5 in August 2017.
Russia’s Manufacturing PMI Improved Marginally in September
The final Russia Manufacturing PMI (Purchasing Managers’ Index) rose marginally in September 2017. It was 51.9 in September compared to 51.6 in August.
A Look at Indonesia’s Manufacturing PMI in September 2017
Indonesia’s (IDX) (ASEA) manufacturing activity stood at 50.4 in September 2017 compared to 50.7 in August 2017.
Why US Companies Have Concerns about the Corporate Tax Structure
Among the 35 OECD countries, the US has the highest corporate tax rate of 35%. This tax rate puts US companies at a disadvantage compared to their foreign rivals.
Why the British Pound Appreciated by 1.5% Last Week
The British Pound (FXB) appreciated by more than 2% against the US dollar last week. The pound (GBB) closed for the week at 1.3288, appreciating by 1.69% against the US dollar (UUP).
Will the Euro Regain Its Momentum this Week?
The euro-dollar (FXE) pair closed the week ending October 13 at 1.1822 against the US dollar (UUP). The shared currency managed to rebound from an 11-week low the week before, affected by political turmoil in Spain.
Has the US Dollar Rally Ended for Now?
The US Dollar Index (UUP) turned lower again in last week after a surprise rally following the October jobs report on October 6.
Alcoa Continues Its Rally as China Keeps Its Commitment
China exported 370,000 metric tons of unwrought aluminum in September, compared to 410,000 metric tons in August.
Why a December Rate Hike Shouldn’t Be Taken for Granted
Not all members of the FOMC, according to the minutes of the meeting, were on the same page with respect to a December interest rate hike.
India Expects Fertilizer Consumption to Rise in 2017
India is another major market for NPK (nitrogen, phosphate, and potash) fertilizers. The country is partly self-sufficient in nitrogen fertilizers.
Why FOMC Members Aren’t Worried about the Market Reaction to Balance Sheet Trimming
The September meeting minutes indicated that the members underscored that the reduction in the Fed’s balance sheet would be gradual.
Phosphate Market Struggles, Hope from Demand Growth
Among the three NPK (nitrogen, phosphate, and potash) fertilizers, phosphate fertilizers have had the worst recovery.
How Many Americans Quit Their Jobs in August?
As per the latest JOLTS report, about 2.1 million Americans quit their jobs voluntarily in August, which was a decrease of 70,000 from the previous reading.