Lara Rhame
Lara Rhame
data economic european impact large markets phase scenario solid taking traders widely
We're getting to a phase where European data could have more of an impact because a solid U.S. economic scenario is so widely expected. The markets are also very thin, so traders aren't taking on large amounts of risk.
across continue data dollar economic remains rising seen solid strong support treasury yield yields
U.S. treasury yields are rising and we've seen that support the dollar across the board. The dollar remains strong on the back of solid U.S. economic data and expectations that the 10-year yield is going to continue to go higher.
claims combined data dollar focus modest morning trade
It is a modest dollar negative; the trade data combined with the claims data, but the focus this morning is very much on digesting the BOJ and on payrolls tomorrow.
data dollar euro happen japanese positive rally versus zone
There really has not been justification for the dollar rally to happen exclusively versus the euro, especially because euro zone data has been kind of positive and Japanese data has kind of languished in a funk.
both continue continuing data dollar fed headline increasing looks means price raise report rise solid supporting yields
The report was dollar positive. With the combination of solid data for the headline and what looks like increasing price pressure, that means you are going to see U.S. yields continue to rise and the Fed continuing to raise rates, both supporting the dollar.
change data hikes inflation policy pricing radar rate screen time
We're not pricing in rate hikes any time soon, and today's data won't change that. Inflation is off the radar screen for policy makers.
certainly data economy looks shape
Certainly the economy now looks like it was in better shape in January-April than expected. But these data don't show the economy making any improvement.
cause data economic fed given hold people quite remain volatility wonder
Given that the economic data will be strong, people will wonder why the Fed is not moving, which could cause some volatility in the markets. But we think the Fed will remain on hold for quite some time.
amount cut data fed stay stream tremendous unless
I don't think there is a tremendous amount the Fed can do, but they can't stay on the sidelines. Unless the data stream improves, they have to cut rates.
critical data dollar holiday income largely personal releases
The dollar is largely unchanged. In these holiday markets, I think releases like tomorrow's personal income data are going to be more critical than the backward-looking GDP report.
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The markets have probably been too quick to connect the dots from the current slew of good data straight to a Fed rate hike,
context data declining difficult exactly fed last markets pressure price scared sees trend trying views
The markets are trying to put this data in the context of how scared the Fed is by it. It's very difficult to see exactly what the Fed views as a continuation of last year's trend of broadly declining price pressure and what the Fed sees as a substantial decline.
certainly create data domestic employment growth notion reinforce
The manufacturing data certainly are positive, but the employment data specifically reinforce the notion that domestic growth is not going be enough to create many jobs.
alert conclude evidence fed seeing slow wait
We are seeing a slowdown, but we're not necessarily seeing a slow economy. The Fed is still going to be on alert for inflation, and we're going to have to wait and see more evidence before we can conclude that it isn't a threat.