The last two weeks have seen a back and forth QE statements from Fed members that have confused market participants regarding the timeline of the US quantitative easing program. Hawks and doves at the Fed have said publicly different deadlines on when the bond buying program should stop, and in some cases if it should be stopped at all.
Comments from various Federal Reserve’s members before Chairman Ben Bernanke addressed congress pointed to a possible wind up of the US quantitative easing program as early as June. The different statements lead to a rise of the USD versus the dollar. Bernanke on the other hand warned lawmakers about the dangers a premature stop could have on the moderate recovery of the US economy. The market took the news as a sign to sell the USD which broke through the 1.29 EUR/USD level.
The US continues to occupy the 2nd speed of moderate economic recovery as per the IMF’s Christine Lagarde. While not recovering as fast as the emerging markets the US has more positives than negatives on the economic front. Specially considering the third rung on the speed scale where Europe and Japan keep failing at gathering traction.
Next week US Consumer Confidence and Gross Domestic Product will be released which if they beat market estimates could end up heating up the end of QE arguments again.
- US Durable Goods Beat Forecasts 
- Chile, Colombia, Mexico and Peru Scrap Tariff Between the Four Countries 
- U.S. Fed’s Bullard: A Big Moment for Japan 
- US Home Sales up 2 Percent in April 
- US PMI Falls to Seven Month Low in May 
- Bullard Fed not Close to Winding Down Stimulus 
- US Jobless Claims Dropped More Than Forecast 
- U.S. Fed Wants to See “Real and Sustainable” Progress in Reducing Unemployment 
- Sales of U.S. Existing Homes Poised for Three-Year High 
- QE May Be on Agenda When Bernanke Testifies to Congress 
- Fed Bullard Said QE Program Should Continue 
- Focus is on Fed 
- Fed’s Evans Says U.S. Economy Has Improved ‘Quite a Lot’ 
- Gold Short Sellers Reach Record High 
- Gold Bears Revived as Rout Resumes After Coin Rush 
- Canada Inflation Falls to Slowest In 4-years on Gas 
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