Credit and Housing Markets Get No Love
By Grace Cheng on February 14, 2008 | More Posts By Grace Cheng | Author's Website
Fed chief Bernanke appeared before the Senate Banking Committee hearing today, and sounded some alarm bells about the housing and job market in the US. He said that "the housing market or the labor market may deteriorate to an extent beyond that currently anticipated, or that credit conditions may tighten substantially further". He basically reassured
the Fed is open to further rate cuts ("will act in a timely manner") although that may not be necessary as he has better expectations for a better year end and 2009, especially with the just approved fiscal stimulus package.
He did say "the outlook for the economy has worsened in recent months".
Seems like the Fed has a U-shaped view about the economy now, soon and much later. Poor, then worse, then better maybe?
The US dollar was moderately down against Euro and Swiss franc on Thursday. EUR/USD’s nearest resistance is around 1.4640-60, then 1.4700. Swissy’s support around 1.0980-1.1000 must be watched.
As expected, USD/JPY targeted 108.60 after breaking above 108.00. 108.80-109.00 will be next resistance.
Friday:
Former Fed’s Greenspan speaks on economy 0030 GMT
Swiss retail sales 0500 GMT
BOJ monthly report 0600 GMT
Eurozone trade balance 1000 GMT
US empire manufacturing, import price index 1330 GMT
US TICS 1400 GMT
US industrial production 1415 GMT
US U of Mich 1500 GMT
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