U.S. economy in a snaphot - New York Fed

Eren Sengezer FXStreet

Federal Reserve Bank of New York just published its monthly presentation titled 'U.S. Economy in a Snapshot'.

Key quotes

Real consumer spending was soft in January, suggesting slower real PCE growth in Q1 than in recent quarters. Auto sales in January and February have shown a step-down compared to Q4 and there were further declines in energy services expenditures due to mild weather.
January data suggested somewhat stronger near-term momentum for business equipment spending in 2017Q1.
Surveys suggest sizable improvement in manufacturing conditions, but production data still indicate sluggish growth. Single-family housing starts appear to remain on a gradual uptrend, but new single-family home sales may have peaked in late 2016.
Payroll growth was solid again in February. The unemployment rate fell, while the labor force participation rate and employment-population ratio rose in the month. Some labor compensation measures are pointing to firmer wage growth.
Headline and core price data were strong in January, suggesting inflation is continuing its progress towards the FOMC’s goal.
U.S. equity indexes and nominal long-term Treasury yields moved higher. After trading in a narrow range for an extended period of time, oil prices recently pulled back over concerns of oversupply in the market.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks. Governor Kazuo Ueda said the policy phase had changed.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.