Fed Goolsbee News Today

The AUD/USD pair prints a fresh two-week high at 0.6635 in the early American session on Tuesday.

It’s all about March US payrolls today with consensus expecting another decent job growth of 214k in combination with a slightly lower unemployment rate (3.8% from 3.9) and firm wage pressure (0.3% M/M & 4.1% Y/Y). The rather high consensus bar and this week’s failed test push US yields through the roof suggests that those levels will be able to hold into this week’s close. The dollar proved to be vulnerable when the long end of the curve underperformed (rising inflation expectations?!...

Focus shifts to first major central bank gatherings of the year. Chronologically, the Bank of Japan has a first go tomorrow. Rumours suggested downward revisions to the near term growth outlook and the near/medium term inflation outlook.

Attention turned to central bank speeches again in absence of key eco data in the US and EMU. Chicago Fed Goolsbee had the biggest market impact. He said that markets may have put the cart before the horse on cuts. He’s seen surprising progress on services inflation, but want to see more progress on housing inflation. It triggered a new sell-off in US Treasuries with the front end of the curve underperforming. US yields add 4.7 bps (2-yr) to 0.5 bps (30-yr). German Bunds shadow the move to a l...

The US Dollar (USD) took a slight downturn in the early part of the week, bracing itself before the release of the Personal Consumption Expenditures (PCE) Price Index data on Friday, which is the Federal Reserve (Fed) preferred gauge of inflation.

Mexican Peso (MXN) remains on the defensive against the US Dollar (USD), hitting a weekly low of 17.93 as shown by the USD/MXN due to hawkish comments by US Federal Reserve (Fed) Chair Jerome Powell.

Mexican Peso prints modest gains against the US Dollar in early trading on Thursday, with traders awaiting the Bank of Mexico (Banxico) monetary policy decision.

Outlook: The big story today may well be the 10-year auction ($40 billion) after demand was okay for the 3-year yesterday.

The USD/CHF pair turns directionless around 0.8750 in the European session, following the footprints of the US Dollar Index (DXY). The Swiss Franc ass

Fed speakers show growing divergence on how to proceed with monetary policy. Atlanta Fed Bostic (non-voter) is inclined to pause at the June meeting, but he confirmed that the committee is still out on the issue. If he had a bias between going up or down as a next move, it would still be up. Resilient consumer spending and tight labour markets pose upside inflation risks even as the Fed’s earlier tightening measures will start having a bigger impact.