Feds Beige Book: Strong dollar reported as a headwind/slight upward pressure on prices

Author: Greg Michalowski | Category: Central Banks

For December 2016 meeting. Prepared by the Cleveland Fed

  • Seven districts had tightening job market conditions
  • Demand for manufacturing goods was mixed
  • Several references to election uncertainty
  • Noted slight upward pressure on overall prices
  • Six  regions expect moderate growth
  • Investment inoil and gas drilling rose slightly
  • New York district reported flat activity. Richmond mixed.  Philadelphia Cleveland Kansas City saw slight growth
  • Strong dollar cited his headwind in few districts
  • Three Fed districts so moderate growth, four saw modest pace
  • New auto sales declined in most districts
  • Majority of districts reported  higher retail sales
  • Banking largely stable
  • Some loan demand improvement
  • Demand for manufactured products mixed/dollar cited
  • Residential real estate activity improved in most districts
  • Nonresidential real estate expanded in many districts
The beige book was prepared by the Cleveland Fed with data collected on or before November 18.

The dollar is little changed with the USDJPY down from 114.23 to 114.15. The  EURUSD remains at 1.0590 - unchanged from just before the release.

In other markets:
  • S&P index is trading unchanged on a day
  • NASDAQ composite index is down -45 or -0.85%
  • Dow is up 48 points or 0.25%.
The S&P and NASDAQ are trading near day low levels.

  • The US 10 year yield is trading at 2.3701% +7.9 basis points
  • The two year note yield is trading at 1.111%, +2.4 basis points.
  • Spot gold is trading at $1175, -$13.38, or  -1.13%.
  • Crude oil futures are trading near the day highs at $49.66. That is plus $4.45 or 9.79%

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