Michael Woolfolk
Michael Woolfolk
asian bank central continued demand elevated ensures foreign oil prices remains strong
We see that elevated oil prices and a continued Asian central bank intervention ensures that foreign demand for U.S. treasuries remains strong during January.
bank changing close fiscal japan march monetary movements policy year
The Bank of Japan is not going to be changing its monetary policy before the fiscal year end on March 31. As corporations close down their books, they don't want any pronounced movements in the dollar-yen rate.
appears bank buying consistent easing economy indication japan japanese prompt returning viewed
This morning's announcement by the Bank of Japan to end quantitative easing is being viewed as an indication that the Japanese economy is returning to health, but appears insufficient to prompt any consistent yen buying as of yet.
bank changing japan monetary strength
There was yen strength on the anticipation the Bank of Japan could be changing its monetary policy. Those expectations have been curbed.
asian bank buying dependent states united united-states
The United States is very dependent on Asian bank buying and petrodollars.
bank canadian continues dollar federal hike narrow rates reserve
If the Bank of Canadian continues to hike rates after the Federal Reserve pauses, it will narrow the rate differential between the two. This will make the Canadian dollar more favorable.
against banks central continue dollar intervene overseas remain supported time weak
The dollar will remain supported for the time being so long as central banks overseas continue to intervene to keep their currencies weak against the U.S. dollar.
anecdotal due evidence floor flows greater impact level lighter lower market point seeing trading
Anecdotal evidence on the trading floor indicates things have been lighter than at any other point in the week. You are seeing some one-off flows that are making a greater impact in the market due to this lower level of liquidity and volume.
below continue data fed labor likely market raising rates remains services support view
February's data support the view that the U.S. labor market remains strong, particularly on the services side, with unemployment solidly below the 5% level. The Fed is likely to continue raising rates for the foreseeable future.
benign canadian dollar inflation
Benign inflation has weakened the Canadian dollar a little bit.
auto loss market reflect rest saying surprise
(The survey) was a big surprise this morning, but some of the market is saying that Detroit, because of loss of auto jobs, does not reflect the rest of the nation.
above capacity fed further given high increases last later levels low march raise rates recent release report
Given recent Fed warnings over high levels of capacity utilization and low levels of unemployment, today's report increases the probability that the Fed will raise rates above 5.0% later this year. Last Friday's release of March unemployment further buttresses this view.
both deep iran liquid markets money possible states sums united
I don't think it is possible for Iran to take money out of both the United States and Europe. There are just not sufficiently deep or liquid markets to place these sums of money.
market tape
But the tape will not be as important to the market as new data.