USD Edges Higher
by Korman Tam
5/14/2008 3:10:00 PM
The greenback was higher against the yen and the sterling, but relinquished some of its gains versus the euro. The economic calendar was light on Wednesday, with just the release of consumer prices. The April CPI figures were better than expected, with the headline readings lower at 0.2% versus 0.3% a month earlier and 3.9% down from 4.0% in the previous year. The excluding food and energy readings also improved, at 0.1% versus 0.2% in March and down to 2.3% compared with 2.4% a year earlier.
Traders will have a lot to digest from the US, with the economic data scheduled for Thursday consisting of weekly jobless claims, NY Fed manufacturing survey, March TICS, April capacity utilization, April industrial output, May Philadelphia Fed survey, and the May NAHB housing market index.
Boston Fed President Rosengren offered a somber assessment of the US economy, saying it has slowed noticeably ¨C with job losses, food and energy prices, asset price falls raising risks to financial institutions. Further, he added that housing price declines have been national and not just regional. Meanwhile, former Fed Chairman Volker said the US was suffering from an economic problem and not just a financial problem. Volker added that the intervention by central banks in mortgage markets was a departure from traditional practices, implying support for a particularly sector of the market.
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