Key US data events reviewed, including Yellen's speech - Nomura
Analysts at Nomura offered their snapshot preview for Yellen's speech and durable goods due tonight.
Key Quotes:
"Chair Yellen Jackson Hole Speech (10am EDT): Chair Yellen is scheduled to speak about “Financial Stability” at Jackson Hole tomorrow (10am EDT). We expect her to defend the current regulatory regime for large financial institutions. But she may also argue that the need to promote financial stability may be another reason for the FOMC to increase their targets for short-term interest rates later this year, even if inflation is slow to pick up."
"Durable goods orders: We expect a 0.3% m-o-m increase in July core durable goods orders (excl transportation goods), after a 0.1% increase in June (Consensus: 0.4%). We think the underlying pace of core manufacturing activity has been steady. Core durable goods output rose by a decent 0.2% in July, following a 0.3% increase in June. Survey data also indicate steady activity. The ISM new orders index remained elevated at 60.4 in July, albeit slightly lower than 63.5 in June. However, we expect a modest fall in motor vehicles and parts orders, based on the industry’s production plans. Further, nondefense aircraft orders will likely revert sharply after an outsized 131% gain in June. Although a sharp increase in US Air Force R&D spending implies strong growth in defense-related orders, it may not be enough to offset declines in other transportation orders. Our forecast for top-line durable goods orders is a 5.2% decline (Consensus: -6.0%)."
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
