Recap 7-12-13



  • 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:
  1. 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

Upcoming Data:

  • 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,