News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • Gold prices moved higher last week, but an upbeat US retail sales report underpinned Treasury yields on Friday, which weighed on bullion. Chinese Q3 GDP is in focus for XAU traders. Get your weekly gold forecast from @FxWestwater here:
  • Equity traders often focus their approach on specific sectors, designed to fit with their approach and style. What sector are you going to target? Read more to find out!
  • Further, your trading knowledge and gain informed market analyses from our expert analysts @CVecchioFX and @PaulRobinsonFX on #Gold with our free Q4 guide, available for free today. #Dailyfxguides
  • #DidYouKnow a #Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out here:
  • Futures have their own set of characteristics and appeal to different types of traders and investors for a variety of reasons. Get your free trading guide and learn to trade the markets with futures here. Download your guide today!
  • RT @ZabelinDimitri: Marx once wrote that “history repeats itself, first as tragedy, second as farce”. In a sadistically comical way, he may…
  • Further your forex knowledge and gain insights from our expert analyst @ @MartinSEssex and @DColman on EUR with our free Q4 market analysis guide, available for free today. #Dailyfxguides
  • US Dollar losing its appear demand picks up for major counterparts. Risk of larger setback as risk appetite stabilises. Get your weekly US Dollar forecast from @JMcQueenFX here:
  • Believe it or not, some stocks may actually be more attractive in a bear market. Learn more about Defensive stocks here:
  • Further your forex knowledge and gain insights from our expert analysts @JohnKicklighter and @JStanleyFX on $USD with our free Q4 market analysis guide, available for free today. #DailyFXGuides
USD Neutral After October Fed Beige Book Shows Economy Grew "Modestly"

USD Neutral After October Fed Beige Book Shows Economy Grew "Modestly"

Tzu-Wen Chen, Technical Strategist

THE TAKEAWAY: Fed’s Beige Book released > Overall economic activity expanded “modestly”; Manufacturing and housing improved, while employment remained little changed > USD neutral

The latest Federal Reserve Beige Book, which was released today, revealed that the U.S. economy “expanded modestly” across all twelve Fed districts since the last report in August. Some improvements were seen in the manufacturing sector and housing market, though the labor market showed little change.

The Beige Book report, which is usually released two weeks before the Federal Open Market Committee (FOMC) meets to set monetary policy, offers anecdotal information on business activity collected nationwide that helps policy makers assess the condition of the economy and actions going forward.

Most of the Fed’s twelve regional banks indicated an improvement in residential real estate conditions as existing home sales and residential construction strengthened. Despite some districts reporting some weakening in manufacturing activity, on balance, conditions in the manufacturing sector had improved since August. Consumer spending was generally reported to be flat to up slightly while overall loan demand was “steady to stronger” in most districts.

On the labor market front, employment conditions were little changed and wage pressures remained “modest”, with “stagnant demand and uncertainty related to the upcoming presidential election, U.S. fiscal policy, and European debt issues cited by some [districts] as restraining hiring”. Price pressures remained contained with little change in prices for both finished goods and input prices, while some regions reported higher prices for agricultural commodities and petroleum-based products.

This latest edition follows the release of the Fed’s September monetary policy meeting minutes last week, which revealed that all but one FOMC member had agreed that the outlook for economic activity and inflation and concerns over the slow labor market recovery warranted additional monetary easing.

USDJPY 1-minute Chart: October 10, 2012

Chart created using Market Scope – Prepared by Tzu-Wen Chen

The U.S. dollar fell slightly against most its major currency counterparts in the initial minutes after the release of the Fed Beige Book. Bucking this trend, the greenback rose slightly against the Japanese yen, paring the earlier decline seen in the minutes preceding the report. At the time this report was written, the USDJPY pair was trading at 78.16 yen.

--- Written by Tzu-Wen Chen, DailyFX Research

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.