The Weekly Wrap – Inflationary Pressures Shift Monetary Policy Expectations, Pegging Back the Dollar
Out of the U.S
Early in the week, industrial production disappointed, with production falling by 1.3% in September. Production had fallen by 0.1% in August.
On Thursday, the focus shifted to Philly FED Manufacturing PMI and jobless claims figures.
While the Philly FED Manufacturing PMI fell from 30.7 to 23.8, the employment sub-index rose from 26.3 to 30.7.
Jobless claims also provided a positive view of labor market conditions. In the week ending 15th October, jobless claims fell from 296k to 290k. Avoiding a return to 300k levels was key.
At end of the week, prelim private sector PMIs delivered mixed results.
In October, the Manufacturing PMI slipped from 60.7 to 59.2, while the Services PMI rose from 54.9 to 58.2. The pickup in service sector activity was key in the week.
On the monetary policy front, FED Chair Powell spoke at the end of the week, with the FED on scheduled to begin tapering.
Out of the UK
It was busier…
