The New York Fed reported one of the clearest signs yet that not everything is hunky dory in econ land. In a move that matches the early stages of the 2008 plunge, the Empire Fed Economic Activity Index just plunged to -14.92 (expectations +4.50.) It’s the biggest miss in over 5 years.
Look for USDJPY to sell off just enough to matter — but, not so much that it reflects badly on the Japanese economy, which had its own embarrassing print last night. GDP declined at an annualized rate of -1.6%, another signal that Abenomics hasn’t worked, isn’t working, and never, ever can work. To Abe worshipers, of course, this is yet another justification for the coming expansion of QQE.
Gotta hand it to the PPT. What they lack in integrity, they make up in single-minded determination. There’s another point or two of downside in ES if that little trend line is to hold. It currently shows two higher highs and two higher lows. That’s a trend they usually care about protecting.
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