|

Weekly Economic & Financial Commentary: Economic Data Reinforce Fed Patience

U.S. Review Economic

Data Reinforce Fed Patience

  • Several indicators released this week signaled a moderation in the pace of economic growth, and provided further reinforcement for patience from the Fed on further monetary policy tightening.
  • Retail sales rebounded in January, but the gain wasn’t enough to completely wash out the weak readings in December, suggesting a slow start to the year for consumer spending.
  • Prices continue to increase only modestly, and with core inflation measures at or near the Fed’s target of 2%, increased risk of a break-out to the upside remains limited.

Global Review Still Slow

Going for Global Growth

  • This week’s economic news remained consistent with the narrative of a slow-motion global expansion. Chinese activity data for early 2019 were mildly soft in tone, while Japan’s activity data were also subdued overall. Q4-GDP figures for the G20 were released and showed that outside of the United States, international economic growth remains on a steadily slowing trend
  • U.K. GDP jumped in January, reversing its December fall, but it is unclear how long that growth pace will persist. The U.K. parliament voted this week to delay the Brexit date, extending uncertainty and likely pushing back Bank of England hikes. Inside U.S. Review 2 U.S. Outlook 3 Global Review 4 Global Outlook 5 Point of View 6 Topic of the Week 7 Market Data 8 Source: Federal Reserve Board, IHS Markit, U.S. Department of Commerce, U.S. Department of Labor and Wells Fargo Securities 

Download The Full Economic Indicators

Author

More from Wells Fargo Research Team
Share:

Editor's Picks

EUR/USD looks offered below 1.1900

EUR/USD keeps its bearish tone unchanged ahead of the opening bell in Asia, returning to the sub-1.1900 region following a firmer tone in the US Dollar. Indeed, the pair reverses two consecutive daily gains amid steady caution ahead of Wednesday’s key US Nonfarm Payrolls release.
 

GBP/USD slips back to daily lows near 1.3640

GBP/USD drops to daily lows near 1.3640 as sellers push harder and the Greenback extends its rebound in the latter part of Tuesday’s session. Looking ahead, the combination of key US releases, including NFP and CPI, alongside important UK data, should keep the pound firmly in focus over the coming days.

Gold the battle of wills continues with bulls not ready to give up

Gold remains on the defensive and approaches the key $5,000 region per troy ounce on Tuesday, giving back part of its recent two day. The precious metal’s pullback unfolds against a firmer tone in the US Dollar, declining US Treasury yields and steady caution ahead of upcoming key US data releases.

Bitcoin's downtrend caused by ETF redemptions and AI rotation: Wintermute

Bitcoin's (BTC) fall from grace since the October 10 leverage flush has been spearheaded by sustained ETF outflows and a rotation into the AI narrative, according to Wintermute.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.