26 Jan 2015
US Data that compromises rate hike - BBH
FXStreet (Guatemala) - Analysts at Brown Brothers Harriman explained that there have been two data points that seemed to work against the optimistic view of a Fed hike taking place in several months.
Key Quotes:
"Average hourly earnings fell, and retail sales (even when autos, gasoline, and building materials are excluded) were disappointing. Investors may have made too much of these reports, and the data at the end of the week could help to correct the impression."
"We note that within the first official look at Q4 GDP (which is expected to be the third consecutive quarter of above 3% annualized growth), there will be an estimate for consumption, of which retail sales account for about 40%."
"Consumption is expected to have posted its strongest quarterly growth in four years, rising by 4% after a 3.2% annualized increased in Q3."
Key Quotes:
"Average hourly earnings fell, and retail sales (even when autos, gasoline, and building materials are excluded) were disappointing. Investors may have made too much of these reports, and the data at the end of the week could help to correct the impression."
"We note that within the first official look at Q4 GDP (which is expected to be the third consecutive quarter of above 3% annualized growth), there will be an estimate for consumption, of which retail sales account for about 40%."
"Consumption is expected to have posted its strongest quarterly growth in four years, rising by 4% after a 3.2% annualized increased in Q3."