Today's Highlights
BOC and ECB on hold
Aussie unemployment improves unexpectedly
FX Market Overview
The US Federal Reserve published their Beige Book yesterday. It painted a positive picture of modest growth in the US economy but there were some worrying signs. The strength of the US Dollar is a concern for exporters, as is the fall in energy prices for the related industries.
The Bank of Canada and the European Central Bank both left their base rates on hold at 0.75% and 0.05% respectively but the Bank of Canada didn't have to contend with a protester leaping onto the desk in front of Mario Draghi and throwing a fistful of flyers into the air. The protestor who is reported to be Josephine Witt, wore a shirt emblazoned with the words, "End the ECB Dick-Tatorship". It's a great video clip if you get a chance to see it because she is smiling all the way through. I love a happy protest don't you.
We heard overnight that Australian employment improved by a larger than expected 37,700 new jobs in March. That was unexpected and is at odds with the general concern over the strength of the Australian economy; a concern that is prompting calls for interest rate cuts. The Aussie Dollar strengthened on the news. Today's data diary is pretty well empty for the morning session but we do get some US housing data later on and a slurry of Federal Reserve Speakers. This is likely to be in line wityhe the comments in the Beige Book so we aren't expecting huge volatility.
I will leave you with the story of Mark Drayton, the Governor of Minnesota. He has issued an executive order to restore the umlauts to signs for Lindström. These were removed by a state directive on signage but locals have criticised the move; saying it detracts from Lindström's nickname of 'Little Sweden'. I wonder if this will continue and whether Americans will start reintroducing the 'u' into Labour and Colour or the 's' to the end of Maths. Maybe that's a step too far. Maybe umlauts are baby steps.
Quote
"Election season is heating up. We're starting to hear who's running for president in 2016. Hillary Clinton is expected to launch her 2016 campaign sometime in the next two weeks. So remember, act surprised."
Seth Meyers
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