Single Currency Drops to Minimum, US Releases Some Important Data
The single currency has declined 0.33%. Euro/dollar is trading at 1.1803. German Import Prices marked 0.0%. Today, the United States will feature CB Consumer Confidence and New Home Sales. Janet Yellen will deliver a speech in Cleveland. Tomorrow, the US will announce Core Durable Goods Orders and Pending Home Sales. Angela Merkel won the election and became a Chancellor. Christian Democratic Union got 33% vote. There is a coalition left to form. The center-left Social Democratic Party got 20% vote, but the leader said the party would not join Merkel’s CDU. The far-right Alternative for Germany also can’t become the Party’s partner. So, CDU is likely to make a coalition with the Federal Democratic Party.
Yesterday, a few of Fed members spoke about the economy. Charles Evans said the projections were appropriate. He claimed that before lifting rates, there should be increased wage and price pressures and the inflation should start improving. William Dudley sees inflation growing towards 2% in the medium term. December’s rate is priced in 70% odds. The main question everyone keeps asking is how Fed will reduce its USD 4.2T balance sheet.