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.

Free Trading Guides
Oil - US Crude
More View more
Real Time News
  • Indices Update: As of 17:00, these are your best and worst performers based on the London trading schedule: France 40: 0.10% Germany 30: 0.06% Wall Street: 0.05% US 500: 0.02% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/V5KtXKuoIP
  • I wrote the gold technical forecast for this week. The Trump-Powell talk doesn't change the analysis: 'Gold Forecast Supports Measured Swings as Support Breaks Fail to Spark Trend' https://www.dailyfx.com/forex/technical/article/fx_technical_weekly/2019/11/15/Gold-Forecast-Supports-Measured-Swings-as-Support-Breaks-Fail-to-Spark-Trend.html
  • The Hong Kong Human Rights and Democracy Act is expected to be taken up for a vote in the Senate this week. The bill would require the State Department to certify once a year if Hong Kong should be allowed to keep special status under US Law.
  • RT @CVecchioFX: Similarly, when Greenspan was Fed Chairman, then-Pres Clinton also pressured him to not change policies. So, only differe…
  • RT @CVecchioFX: I was able to read Paul Volcker's memoir "Keeping at It" (https://t.co/TP4jgMHawR) last weekend. Interesting historical ane…
  • It's worth putting this Trump-Powell meeting in context. https://t.co/kJpOZ7yjMt
  • I doubt Powell intends to 'bend the knee' to steady rate cuts - much less negative rates. Nonetheless, market expectations of Fed cuts through 2020 growing ($DXY) https://t.co/JTCvBwt8hZ
  • Me in 2010 vs me now 💪 https://t.co/9m7l5K9H80
  • US Treasury Yields Update: 2-Year: 1.592% 3-Year: 1.593% 5-Year: 1.625% 7-Year: 1.723% 10-Year: 1.805% 30-Year: 2.288% $TNX
  • Trump says meeting with Chair Powell included topics including interest rates, negative rates, USD strength and the impact the USD has on manufacturing and trade with China and EU $EUR $DXY $SPX
Forex: Fed November Beige Book Shows Economy Grew at "Measured Pace"; USD/JPY Strengthened

Forex: Fed November Beige Book Shows Economy Grew at "Measured Pace"; USD/JPY Strengthened

2012-11-28 20:30:00
Renee Mu, Currency Analyst

THE TAKEAWAY: Fed’s Beige Book released > Overall economic activity expanded at “measured pace”; Consumer spending and employment increased, while manufacturing weakened > [USD/JPY Strengthened]

The latest Federal Reserve Beige Book, which was released today, revealed that the U.S. economy “expanded at a measured pace” across all twelve Fed, with seven of districts citing growth at a modest pace. However, because of Hurricane Sandy, New York and two other districts reported weaker conditions in October and November.

The Beige Book report, which is usually released two weeks before the Federal Open Market Committee (FOMC) meets to set monetary policy, offers anecdotal evidence 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 consumer spending, while manufacturing softened due to seven districts under contraction. Residential and commercial real estate was reported to gain slightly in general. In transportation, reports were mixed as hurricane Sandy slowed shipments in some districts.

On the labor market, employment conditions were modest improved in most districts while wage pressure remained ‘subdued’ over the board. In addition, almost every district described price growth as modest despite of occasionally examples with higher price growth in raw materials.

This latest edition follows the release of the Fed’s November monetary policy meeting minutes last week. The minutes revealed that many members saw economic outlook as little changed since their September decision and favored more quantitative easing since operation twist is due to expire next month.

USDJPY 1-minute Chart: November 28, 2012

Fed_November_Beige_Book_body_1128-4.jpg, Forex: Fed November Beige Book Shows Economy Grew at "Measured Pace"; USD/JPY Strengthened

The U.S. dollar strengthened against most its major currency counterparts in the minute after the release of the Fed Beige Book. As can be seen from one-minute chart above, the USD/JPY pair rose to 81.91 yen from 81.88 yen in the minutes preceding the report. At the time this report was written, the USD/JPY pair was trading at 81.86 yen.

--- Written by Renee Mu, DailyFX Research

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


News & Analysis at your fingertips.