The Week Ahead: Week of October 20th, 2013
Sunday, October 20, 2013
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Fed Policy now on Hold
There is little doubt that the partial government shutdown has been a fiscal drag on an economy that was already starting to slow. Furthermore, key data needed for Fed policy decisions have been delayed. Even the more hawkish Fed members are now saying that it will be difficult to make any major policy decisions at the upcoming October 30 FOMC. So Fed "tapering" is likely to be on hold for a while longer. In response to this new expectation, 10yr bond yields tumbled to as low as 2.55% on Friday from 2.84% before the budget/debt limit decision. Tumbling U.S. bond yields have undermined confidence in the USD.
Week Ahead
The government shutdown has wreaked havoc with the calendar for U.S. data. Government agencies closed by the shutdown will now be releasing data due during the shutdown period along with new data. Tuesday will see the release of the delayed September Employment data. Other major data highlights of the week include U.S. Existing Homes sales Monday, Australian CPI, BOE Minutes and a Bank of Canada decision Wednesday, assorted Flash PMI reports and U.S. weekly Jobless claims Thursday and German IFo data, UK preliminary GDP, and final University of Michigan data on Friday.
Ayman Khlifat On Twitter
Follow @aymankkhlifat
Fed Policy now on Hold
There is little doubt that the partial government shutdown has been a fiscal drag on an economy that was already starting to slow. Furthermore, key data needed for Fed policy decisions have been delayed. Even the more hawkish Fed members are now saying that it will be difficult to make any major policy decisions at the upcoming October 30 FOMC. So Fed "tapering" is likely to be on hold for a while longer. In response to this new expectation, 10yr bond yields tumbled to as low as 2.55% on Friday from 2.84% before the budget/debt limit decision. Tumbling U.S. bond yields have undermined confidence in the USD.
Week Ahead
The government shutdown has wreaked havoc with the calendar for U.S. data. Government agencies closed by the shutdown will now be releasing data due during the shutdown period along with new data. Tuesday will see the release of the delayed September Employment data. Other major data highlights of the week include U.S. Existing Homes sales Monday, Australian CPI, BOE Minutes and a Bank of Canada decision Wednesday, assorted Flash PMI reports and U.S. weekly Jobless claims Thursday and German IFo data, UK preliminary GDP, and final University of Michigan data on Friday.
Ayman Khlifat On Twitter
