The publication yesterday of the Beige book report on the economic conditions in the 12 districts of the regional Reserves indicates that growth persists and that the Fed believes that wage growth will be "flat to strong” in the coming months. Once again, the fragility of the global economy is cited as an obstacle to manufacturing and exporting. This report sets the stage for the meeting of 15-16 March when the Fed will make its decision on interest rates. This morning, the market anticipates that there is 12% probability that the policy rate could be raised a notch.
This morning, we are keeping an eye on the publication of several news from the United States. The initial jobless claims will open the march at 8:30 am, followed by the Markit Services PMI at 9:45 and finally the durable goods orders, manufacturing orders and the non-manufacturing ISM composite at 10:00. In general, economists expect rather stable readings. This will give us something to monitor while waiting for the US jobs figures to be published tomorrow morning. Have a good day!
