- According to Reuters, Fed officials are considering moving the current 6.5% UR threshold for ZIRP even lower. Some Fed members already have hinted ZIRP could stay in place even if UR drops to 6.5% or less but an official policy commitment could be the next step. “Officials privately say the option to lower the unemployment threshold is on the table but not a sure thing.”
- Overnight, China’s finance minister said that China can endure a growth slowdown to 6.5%, which sparked bearish moves in China sensitive assets. AUDUSD broke below 0.90.
- China Data:
- M2 Growth dropped to 14% YoY vs 15.2% exp and 15.8% prev.
JPM and WFC results were both broadly inline.
Fitch downgraded France to AA+ from AAA
- Mon: China GDP, IP, Retail Sales, US Empire Mfg, Retail Sales
- Tue: UK CPI, German Zew, US CPI, NAHB Housing Market index
- Wed: UK Unemployment, BoE Minutes, US Housing Starts,
- Thu: US Jobless Claims, Philly Fed
- Fri: Canada CPI,