Trying to time when the Federal Reserve will cut interest rates next and by how much is the biggest task for the financial markets at the moment and the biggest driver of currency, stock and bond market fluctuations. The majority of the market is looking at just non-farm payrolls, inflation data, consumer spending and bond yields, which means if that?s all that you follow, you risk being behind the curve. The Fed?s job is to not only balance growth with inflation, but also to ensure stability in the banking sector. They need to be ahead of the curve and in order to do so they look at much more than the monthly consumer and inflation data. Our new report Watch What the Fed Watches provides weekly updates on many of the things that the Fed follows including bank deposits, credit card delinquencies and bond spreads.
According to the latest update of the data, even though the stock market has rebounded following the Fed?s recent 50bp rate cut, the US economy is not completely out of the woods. Here are some highlights:
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[li][B]Credit and mortgage delinquencies are on the rise. Will the US consumers be able to satisfy their outstanding debts?[/B] [/li][li][B]Despite an visible improvement in lending markets, banks still demand a lot more to be compensated for taking risk[/B] [/li][li][B]The VIX, referred to by some as the fear index, is trading at nearly 19 percent. Watch out Carry Trades![/B][/ul] [/li]
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[B]CREDIT MARKET: HOW IS IT DOING?[/B]
[B]A DEEPER LOOK INTO THE CHANGES THIS WEEK:[/B]
[B]STOCK MARKET: HOW IS IT DOING?[/B]
[B]
A DEEPER LOOK INTO THE CHANGES THIS WEEK:[/B]
[B]U.S. CONSUMER: HOW ARE THEY DOING?[/B]
[B]A DEEPER LOOK INTO THE CHANGES THIS WEEK:[/B]
[B]Written by Antonio Sousa and David Rodriguez, Currency Analysts for DailyFX.com[/B]
[B] [/B]