The Beige Book was released this afternoon and it shows that economic activity has continued to expand in a “modest to moderate†pace since the previous Beige Book release last month. The upbeat report was actually a non-event as far as the currency markets were concerned as traders remain focused on the Bank of England and European Central Bank meetings tomorrow and release of US non farm payroll on Friday.
According to the Beige Book, most districts reported expansion in consumer spending, although retail sales slowed in some Districts through late February. According to the FED fiscal policy and higher gasoline prices had a negative effect on sales.
Tourism gained in a number of Districts and services demand was generally positive. Manufacturing modestly improved in most regions, with several Districts reporting strong demand from the auto, food and residential construction industries. Stronger real estate activity was reported in most areas.
The mjority of Districts reported “modest improvements in labor market conditionsâ€.
The Beige Book is released two weeks before each policy meeting and is based on information that is gathered by the Fed’s 12 regional banks. The next policy meeting of the FOMC is scheduled for March 19-20.
As the trading day comes to an end, the EUR is looking rather ill. However, the spectre of the “Draghi Comments†looms over the single currency as far I’m concerned. I have a feeling he will attempt to “prop up†the EUR tomorrow morning during his press conference.
Just a reminder, the BOE announces at 7:00 am EST and the ECB at 7:45 am EST. Mr. Draghi will begin his press conferenced at 8:30.
