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16 Oct 2014
Weakness in US sales rises concerns about growth moderation - RBS
FXStreet (Bali) - Weakness in US Sept sales activity has played into rising concerns about a US growth moderation, notes the FX Strategy Team at RBS.
Key Quotes
"The weakness in September sales activity has played into rising concerns about a US growth moderation, and a positioning clearing in the USD and US interest rate products likely reflects this risk."
"Perhaps more worrying is the recent tightening in financial conditions – Bloomberg’s US financial conditions index (available at BFCIUS Index), which measures financial conditions relative to “pre-crisis norms”, has turned negative, implying financial conditions are net tightening for the first time since 2012."
"Several FOMC regional presidents will speak tomorrow and will give fresh comments on global growth and inflation developments, including Kocherlakota (dove, 2014 voter), Lockhart (leans dovish, 2015 voter), Plosser (hawk, 2014 voter) and Bullard (hawk, non-voter 2014 and 2015)."
Key Quotes
"The weakness in September sales activity has played into rising concerns about a US growth moderation, and a positioning clearing in the USD and US interest rate products likely reflects this risk."
"Perhaps more worrying is the recent tightening in financial conditions – Bloomberg’s US financial conditions index (available at BFCIUS Index), which measures financial conditions relative to “pre-crisis norms”, has turned negative, implying financial conditions are net tightening for the first time since 2012."
"Several FOMC regional presidents will speak tomorrow and will give fresh comments on global growth and inflation developments, including Kocherlakota (dove, 2014 voter), Lockhart (leans dovish, 2015 voter), Plosser (hawk, 2014 voter) and Bullard (hawk, non-voter 2014 and 2015)."