|

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 loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.