Fed's Beige Book: Overall outlook was modestly optimistic


Employment in the twelve Fed districts increased overall with gains in manufacturing cited most often, the US Federal Reserve noted in its Beige Book.

Additional takeaways as summarized by Reuters

"Some districts also reported slowing job growth and increased hiring volatility, particularly in service industries, with rising instances of furloughed workers being laid off permanently as demand remained soft."

"Firms continued to experience difficulty finding necessary labor, a matter compounded by daycare availability, as well as uncertainty over the coming school year and jobless benefits."

"Economic activity increased among most districts, but gains were generally modest, activity remained well below pre-crisis levels."

"Manufacturing rose in most districts, consumer spending continued to pick up."

"Wages were flat to slightly higher in most districts with greater pressure cited among lower-paying positions."

"Some firms also rescinded previous pay cuts."

"Residential construction was a bright spot."

"Overall outlook among contacts was modestly optimistic but a few districts noted some pessimism."

"Other firms have looked to roll back hazard pay for high-exposure jobs, though some have chosen not to do so for staff morale and recruitment purpose."

"Input prices generally rose faster than selling prices but were moderate overall."

"Price pressures increased since the last report but remained modest."

"Notable exceptions included inputs experiencing demand surges or supply-chain disruptions, such as structural lumber, for which prices spiked."

"Several districts also reported that costs for personal protective equipment and inputs to it remained elevated."

"Freight transportation rates rose in several districts due to a resurgence in demand."

Market reaction

The US Dollar Index edged slightly higher on these remarks and was last seen gaining 0.53% n the day at 92.81.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD holds above 1.17, shrugging off upbeat US consumer confidence

EUR/USD is trading above 1.17, holding its gains despite upbeat US data. The CB Consumer Confidence jumped to 101.8 points, beating estimates. Fed speakers are awaited and the presidential debate is eyed.

EUR/USD News

GBP/USD retreats from highs amid Brexit, coronavirus uncertainty

GBP/USD is retreating from the highs close to 1.29 as concerns about Brexit talks and rising UK coronavirus cases are taking their toll on the pound. 

GBP/USD News

XAU/USD holds steady near multi-day tops, around $1890 region

Gold built on the previous day's goodish bounce from 100-day SMA and edged higher through the first half of the trading action on Tuesday. The overnight sustained move beyond 100-hour SMA was seen as a key trigger for bullish traders and pushed the commodity to multi-day tops.

Gold News

Presidential Debate Preview: Trump may lose due to his own buildup, market implications

The first presidential debate is set to shake up the elections campaign.  President Trump's playing down of challenger Biden's skills may turn into a double-edged sword. Markets will move on implications for a new fiscal relief package. 

Read more

WTI drops to fresh lows near $39.70 ahead of API

Prices of the American benchmark for the sweet light crude oil broke below the $40.00 mark per barrel and slipped back to the $39.70 region on Tuesday.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures