All posts by admin

Fed’s Beige Book: Manufacturers in all districts expressed concern about tariffs

Your ads will be inserted here by

Easy Plugin for AdSense.

Please go to the plugin admin page to
Paste your ad code OR
Suppress this ad slot.

Below are the key highlights from the Federal Reserve's closely watched Beige Book, via Reuters.

  • U.S. Economy continued to expand in recent weeks.
  • 10 of 12 districts reported 'moderate or modest growth;' Dallas district reported 'strong growth' helped by energy; st. Louis district called growth 'slight'.
  • Manufacturers in all districts expressed concern about tariffs; many reported higher prices and supply disruptions they attributed to new trade policies.
  • Prices increased in all districts at 'modest to moderate' pace; pricing pressures are expected to 'intensify further' in some districts.
  • Prices of key inputs rose further, including fuel, construction materials, freight and metals; tariffs contributed to increases for metals, lumber.
  • A few districts described input price pressures as 'elevated or strong'.
  • Pass-through from input to consumer prices remained 'slight to moderate'.
  • All districts reported labor markets were tight; many said inability to find workers constrained growth.
  • On balance wage increases were 'modest to moderate'.
  • Consumer spending was up in all districts with particular strength in Dallas, Richmond.
  • Several districts reported slow growth in existing home sales but were not 'overly concerned' about rising interest rates.
VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.22_1171]
Rating: 0 (from 0 votes)

Fed’s Beige Book: Manufacturers in all districts expressed concern about tariffs

Your ads will be inserted here by

Easy Plugin for AdSense.

Please go to the plugin admin page to
Paste your ad code OR
Suppress this ad slot.

Below are the key highlights from the Federal Reserve's closely watched Beige Book, via Reuters.

  • U.S. Economy continued to expand in recent weeks.
  • 10 of 12 districts reported 'moderate or modest growth;' Dallas district reported 'strong growth' helped by energy; st. Louis district called growth 'slight'.
  • Manufacturers in all districts expressed concern about tariffs; many reported higher prices and supply disruptions they attributed to new trade policies.
  • Prices increased in all districts at 'modest to moderate' pace; pricing pressures are expected to 'intensify further' in some districts.
  • Prices of key inputs rose further, including fuel, construction materials, freight and metals; tariffs contributed to increases for metals, lumber.
  • A few districts described input price pressures as 'elevated or strong'.
  • Pass-through from input to consumer prices remained 'slight to moderate'.
  • All districts reported labor markets were tight; many said inability to find workers constrained growth.
  • On balance wage increases were 'modest to moderate'.
  • Consumer spending was up in all districts with particular strength in Dallas, Richmond.
  • Several districts reported slow growth in existing home sales but were not 'overly concerned' about rising interest rates.
VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.22_1171]
Rating: 0 (from 0 votes)

US Housing Starts: Supply issues weighing a little more heavily on homebuilders – Wells Fargo

Your ads will be inserted here by

Easy Plugin for AdSense.

Please go to the plugin admin page to
Paste your ad code OR
Suppress this ad slot.

Analysts at Wells Fargo, take a look at the weakness seen in Housing Starts. Today’s data showed a decline of 12.3% (significantly below the slide of 2.2% expected). 

Key Quotes: 

“Housing starts came in well below expectations, with overall starts tumbling 12.3 percent to a 1.173-million unit pace. Single family starts fell 9.1 percent and starts of projects with 5 units or more tumbled 20.2 percent.”

“A little more than half of June’s drop was in the Midwest, where starts tumbled 35.8 percent after jumping 51.9 percent the prior month. The extreme volatility in the Midwest is likely due to some unusual seasonal distortions that caused an unusually large proportion of starts for the first six months of 2018 to occur in May.”

“Even after accounting for the unusual volatility in the Midwest, overall starts were still extremely weak and suggest that the housing sector has lost momentum.”

“The recent weakness in housing starts is perplexing, given continued tight supply of homes available for sale and fairly high levels of builder confidence. We suspect that supply issues are now weighing a little more heavily on homebuilders.”

“As disappointing as June’s housing starts are, they do not suggest the housing recovery has shorted out. Builders remain fairly optimistic and buyer traffic is reported to be fairly solid. Stronger job and income growth should push home buying higher in coming months.”
 

VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.22_1171]
Rating: 0 (from 0 votes)

US Housing Starts: Supply issues weighing a little more heavily on homebuilders – Wells Fargo

Analysts at Wells Fargo, take a look at the weakness seen in Housing Starts. Today’s data showed a decline of 12.3% (significantly below the slide of 2.2% expected). 

Key Quotes: 

“Housing starts came in well below expectations, with overall starts tumbling 12.3 percent to a 1.173-million unit pace. Single family starts fell 9.1 percent and starts of projects with 5 units or more tumbled 20.2 percent.”

“A little more than half of June’s drop was in the Midwest, where starts tumbled 35.8 percent after jumping 51.9 percent the prior month. The extreme volatility in the Midwest is likely due to some unusual seasonal distortions that caused an unusually large proportion of starts for the first six months of 2018 to occur in May.”

“Even after accounting for the unusual volatility in the Midwest, overall starts were still extremely weak and suggest that the housing sector has lost momentum.”

“The recent weakness in housing starts is perplexing, given continued tight supply of homes available for sale and fairly high levels of builder confidence. We suspect that supply issues are now weighing a little more heavily on homebuilders.”

“As disappointing as June’s housing starts are, they do not suggest the housing recovery has shorted out. Builders remain fairly optimistic and buyer traffic is reported to be fairly solid. Stronger job and income growth should push home buying higher in coming months.”
 

VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.22_1171]
Rating: 0 (from 0 votes)

USD/CAD drops below 1.32 on crude oil rally

  • Crude oil gains traction in the US afternoon.
  • US Dollar Index moves sideways near 94.80.

The USD/CAD pair came under a heavy selling pressure in the last hours as the rising crude oil prices ramped up the demand for the commodity-sensitive loonie. The pair, which touched its highest level since June 29 at 1.3260, was last seen trading at 1.3175, losing 15 pips on the day.

Earlier today, after the weekly report released by the EIA showed a surprise 5.8 million barrels build in crude oil stocks in the United States, the barrel of West Texas Intermediate plummeted to its lowest level in nearly a month at $66.32. However, news of Venezuela's Amuay oil refinery shutting down one of its distillation units caused concerns over supply disruptions and allowed crude oil prices to gains traction. At the moment, the barrel of WTI was up 0.85% on the day at $67.75.

On the other hand, the US Dollar Index, once again, lost its momentum above the 95 mark and turned flat in the 94.70/80 area following the disappointing housing data from the United States. Investors are now focused on the Fed's Beige Book. 

“The minutes from the June FOMC meeting noted that “contacts in some Districts indicated that plans for capital spending had been scaled back or postponed as a result of uncertainty over trade policy.” Any additional evidence on disruptions caused by trade uncertainty will be of interest as the June minutes indicated that “most participants noted that uncertainty and risks associated with trade policy had intensified,” Nomura analysts wrote.

Technical levels to consider

On the downside, supports could be seen at 1.3170 (20-DMA/daily low) aligns as the initial support ahead of 1.3100/1.3095 (psychological level/50-DMA) and 1.3065 (Jul. 9 low). On the upside, resistances could be seen at 1.3200 (psychological level), 1.3260 (daily high) and 1.3300 (psychological level).

VN:F [1.9.22_1171]
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.22_1171]
Rating: 0 (from 0 votes)