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Let's party like it's 1985

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  • New Zealand's central bank statement declared the institution to be unhappy with the strength of the currency, to want it weaker, and to be prepared to intervene to achieve that end. It is all very 1980s in a Plaza Accord sort of a way.
  • According to the Financial Times, Euro weakness should be a source of satisfaction at the ECB. The problem with all this is that currencies do not have the real economic impact that they did in the 1980s or the 1990s - more a profit than a volume effect.
  • Euro M3 money supply is scheduled for release - a measure that provides some degree of insight into the success of the ECB in stimulating bank lending in the Euro area. There is no success for the ECB in stimulating bank lending in the Euro area.
  • US durable goods orders will be pulled down as to the headline release by the volatile aircraft orders component. Stripping that away the underlying data should show strength. The Kansas City Fed sentiment measure is also due.

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