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The force of the Fed

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The US may start to attract a little more attention today. The Fed has two speakers pushing their way into the media spotlight – with more to come later this week. With policy multifaceted, not a binary hawk versus dove distinction, hearing from Fed members is important.
  • The Fed's Beige Book of economic anecdote is also due. At a time of structural change, rigidities in "conventional" data can lead to a misreading of economic developments. Supplementing official figures with anecdotal data is important.
  • The Chinese authorities seem to be trying to converge the onshore and offshore RMB exchange rates. Meanwhile trade data for China came in strong, but there are questions over the quality (more than usual).
  • The Euro area is generally pretty quiet. French and Greek GDP is scheduled, with Greek inflation expected to go positive again – but this all predates the base effect issues, and so is not necessarily a major focus.