Good morning everyone! Here are this mornings #IronFX #MainPoints by Marshall Gittler: • NY Fed President Dudley gives a hint about FOMC discussions – Says rates should be lifted first in order to regain monetary flexibility – Says FOMC will take market reaction into account when setting pace of tightening – Yields have declined, which would allow FOMC to tighten faster = USD-supportive • Dollar gains vs most G10, EM currencies despite lower rates – Could be due to risk aversion ahead of European Parliament elections & rebound in peripheral European bond yields, or risk aversion caused by Thai military intervention – Key point: this time, risk aversion is benefiting USD • BoJ keeps policy steady, as expected – As investment improves, fewer people expect BoJ to add to stimulus – Higher investment plus lower savings = possible current account deficit • AUD, NZD weaker – AUD weakens on drop in consumer confidence following contractionary budget – NZD lower after prices fall at the 7th consecutive milk auction • Today: – UK: Retail sales expected to rebound in April, showing consumer-led recovery still healthy = GBP-positive
Posted on: Wed, 21 May 2014 05:33:34 +0000