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Tumbleweed rolls through the economic calendar

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  • A Friday with a relatively empty data calendar is never a good thing from an economists' perspective. Rather an reverentially listening to the opinions of economists (as is only right) markets in such circumstances are inclined to overreact to politicians' statements and positioning.
  • Japanese finance minister Aso has said the yen has been weakening too rapidly. The benefits of yen weakness (enhanced profits for exporters that may, perhaps translate into increased wages) hit long term. The costs (higher commodity prices in yen terms) hit short term. There is an election in the short term.
  • ECB president Draghi is speaking in the wake of weaker sentiment data (although whether that reflects weakness in expectations, or a desire to influence policy makers' beliefs about corporate expectations is moot). No doubt the pretence of a united ECB will be maintained.
  • The US Kansas Fed business sentiment data wraps a week of generally stronger economic figures, including pricing. The data flow did not deter Fed dove Williams from generally sounding dovish in comments overnight.

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