17 Jul 2014
Prospect for the US economy keeps improving - Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, sees the US economy extending its recovery.
Key Quotes
"The Beige Book painted a reasonably bright picture of the US economy, as well as highlighting increased spending during the World Cup. This afternoon's data should provide more of the same with housing starts expected at a 1.085mn rate, Philly Fed up to 21 (from 17.8), while jobless claims should remain low at 325k."
"As the US economic data improve, so the tide of US monetary policy is turning, albeit at a glacial pace. The dollar will benefit eventually, but it really needs some help from the Treasury market. The front end is responding, with 2-year swap rates 30bp higher than they were in late November, but over the same period, 10-year swap rates have fallen as the curve flattened."
Key Quotes
"The Beige Book painted a reasonably bright picture of the US economy, as well as highlighting increased spending during the World Cup. This afternoon's data should provide more of the same with housing starts expected at a 1.085mn rate, Philly Fed up to 21 (from 17.8), while jobless claims should remain low at 325k."
"As the US economic data improve, so the tide of US monetary policy is turning, albeit at a glacial pace. The dollar will benefit eventually, but it really needs some help from the Treasury market. The front end is responding, with 2-year swap rates 30bp higher than they were in late November, but over the same period, 10-year swap rates have fallen as the curve flattened."