The Fed’s monthly Beige Book anecdotal report on the economy always moves the market more than it should.
If there is talk about a pickup in US growth (and there will be) the US dollar will rally on speculation about less QE.
The first thing to look for is a change in the description of growth. The current wording is ‘moderate or modest’ in all 12 districts. Comments on consumer spending, housing, lending and manufacturing will also be closely scrutinized.
Another thing to watch out for is misleading headlines. A few months ago Bloomberg had a bad habit of posting analysis, rather than the content of the release and it confused the market.
