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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
More View more
Real Time News
  • Secretary Mnuchin says he would support additional fiscal measures $SPX
  • Hey traders! Get your Thursday market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/iRF2tSbRuh
  • Fed Chair Powell says the municipal finance market is working pretty well
  • GBP/USD will likely extend its recent slide caused principally by a stronger US Dollar. Get your $GBPUSD market update from @MartinSEssex here:https://t.co/izio6AVcFX https://t.co/HCGK3NEW8N
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.02% 🇯🇵JPY: -0.07% 🇨🇦CAD: -0.07% 🇨🇭CHF: -0.32% 🇳🇿NZD: -0.38% 🇦🇺AUD: -0.67% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/pv6tWdcxqU
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: US 500: -0.34% Wall Street: -0.40% Germany 30: -0.85% France 40: -1.31% FTSE 100: -1.70% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/m31LiWOqsh
  • Heads Up:🇩🇪 Bundesbank Wuermeling Speech due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-24
  • what a move in $AUDUSD this week Rising wedge reversal filled in, price action driving towards .7000. So much selling so fast, may need a break before it can take out the big fig https://t.co/RSLLc97o7G https://t.co/XGAkj157hh
  • BoE Governor Bailey says the BoE should have negative rates in toolbox because other countries have demonstrated they can do it
  • BOE Governor Bailey says we have to look at how negative rates will affect the financial system - BBG
Forex: US Dollar May Rise as Fed Beige Book Warns on Growth Outlook

Forex: US Dollar May Rise as Fed Beige Book Warns on Growth Outlook

2012-11-28 14:23:00
David de Ferranti, Currency Analyst
Share:

THE TAKEAWAY: The US Dollar may rise on haven demand as the Fed’s Beige Book warns of headwinds from the impact of Hurricane Sandy and fears about the “fiscal cliff”.

The US Dollar may extend overnight gains as the Federal Reserve’s Beige Book regional economic conditions survey comes across the wires. Forex traders will look to the report to assess how the world’s largest economy has performed since October and what that may imply for December’s FOMC policy meeting.

What Does The Beige Book Mean For Markets?

Positive comments on growth in the major sectors and districts covered by the publication would be seen as positive for risk appetite, driving sentiment-geared currencies such as the Australian, Canadian and New Zealand Dollars higher. On the other hand, a worried tone may spur further flows into safe-haven assets like the US Dollar.

October’s Beige Book highlighted dampened retail sector growth due to consumer concerns over the ‘fiscal cliff’, political uncertainty and high gasoline prices. While US elections have since passed, the economy has faced a new foe as Hurricane Sandy – the second-costliest storm in US history – ravaged the East Coast and disrupted commercial activity.

How Will The Fed Act In December?

The Beige Book provides anecdotal evidence from each of the Fed’s 12 districts and provides valuable ground-level insights on how the US economy is recovering. The US central bank closely follows the labour market and household sector in calibrating the monetary policy setting.

Economists expect the Fed will not enact any additional monetary easing at the December 15th FOMC meeting. However, even a particularly dovish Beige Book seems unlikely to prove supportive as hopes for additional accommodation increasingly fail to underpin risk trends. Indeed, the announcement of “QE3” in September has had a limited impact on demand for risk-assets thus far, suggesting investors are unlikely to be encouraged by the prospect of more of the same.

Meanwhile, “fiscal cliff” concerns continue to loom large. Federal Reserve Chairman Ben Bernanke stated last Tuesday that he believes 2013 will be a “very good [year] for the American economy” if only the sudden austerity jolt can be avoided (full comments here). With that in mind, even a relatively positive Beige Book outcome is unlikely yields lasting support for risk trends as the overhang of fiscal uncertainty in the US continues to weigh on confidence and drive haven demand for the greenback.

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

DISCLOSURES