|

US: Chicago PMI, Pending home sales and Fed Beige Book in focus - Nomura

Research Team at Nomura, suggests that the investors will be keenly eyeing the release of Chicago PMI, Pending home sales and Fed Beige Book in today’s US session.

Key Quotes

Chicago PMI: The headline index fell to 50.6 in October from 54.2 in September, implying business activity growth expanded by less than the previous month. The persisting impact of the strong dollar and tepid capital spending in prior months likely contributed to the slower pace of activity at manufacturers in the region. Other regional manufacturing surveys in November suggest conditions improved over the month. The Empire State manufacturing survey rebounded to positive territory and the details of the Philly Fed survey implied further improvement in manufacturing activity. Based on these regional surveys, we forecast that the Chicago PMI improved to 53.0 in November from 50.6 in October (Consensus: 52.5).”

Pending home sales: Pending home sales, which tend to lead existing home sales by couple of months, advanced 1.5% in September. This reading is consistent with the pickup seen in existing home sales in October. Healthy labor market conditions and historically low mortgage rates suggest that current demand may continue in coming months, although the supply of for-sale homes remains limited, which may dampen the prospects of better home sales. Consensus is expecting pending home sales to have improved only slightly in October by 0.1% m-o-m.”

Fed Beige Book: We expect the Fed Beige Book prepared for the 13-14 December FOMC meeting to show that the economy expanded at a modest to moderate pace since the last update in October. Incoming data have been somewhat positive, as the better momentum from the prior month persisted. Payroll gains remained steady and inflation progressed further toward the Committee’s 2% target in October. In the previous Beige Book, the outlook was generally positive. Some Fed districts reported tightening labor market conditions with modest wage and employment growth, but most districts reported slow price growth with flat input and/or output prices. Also, some contacts quoted the Presidential Election as a source of near-term uncertainty. In the upcoming Beige Book, we will look for any change in the outlook post-election in addition to any additional color on the slack in the labor market and inflationary pressure in the districts.”

Author

Sandeep Kanihama

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

More from Sandeep Kanihama
Share:

Editor's Picks

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10
Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.
 Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?
Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.