It's Yellen (subject to approval)
- The US administration has announced that the US administration will announce that the US administration will nominate Janet Yellen as the next Federal Reserve Chair today at 1500 EST. She still needs Senate confirmation, but it isn't as if the Senate is doing anything else at the moment.
- The knee jerk media reaction is "Yellen is dovish", but it is more complex than that. The bias of the Fed Chair is probably not relevant near term the bias does not matter at the start of the Fed tapering process (relatively easy to manage) but at the conclusion. Knowing when to stop tapering is the difficult decision.
- Bank of Japan deputy governor warned of dire consequences if the US government did not get its act together (Japanese officials are well versed in the dire consequences of government failures). Nakaso also signalled no immediate desire to ease monetary policy further.
- UK industrial production is seen improving, as is German industrial production. However there may be downside risk to Germany's data following disappointing factory orders data. UK credit conditions data are also due, of interest given the media focus on housing and mortgages.
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