Beige Book Shows Signs of Improvement in the U.S. Economy
By FXCompass — Wednesday, 14 April 2010
The Federal Reserve Beige Book used by the FOMC to help make monetary policy decisions noted signs of improving economical activity on Wednesday.
“Overall economic activity increased somewhat since the last report across all Federal Reserve Districts except St. Louis, which reported "softened" economic conditions.” said the Fed.
The Fed underlined increases in retails sales and the car industry as well as an improving housing market. However, the commercial real estate remains pressured.
The Fed reports encouraging signs in the temporary jobs market: “While labor markets generally remained weak, some hiring activity was evident, particularly for temporary staff. Wage pressures were characterized as minimal or contained.”
Manufacturing and commodity-based production all showed positive growth as well.
The Beige Book was prepared by the Federal Reserve Bank of Minneapolis and is based on information collected before April 5.
Dollar pressured
The dollar was pressured to the downside on Wednesday amid improving risk sentiment and a notable increase in commodities.
The USD/JPY returned below 93.00 before retracing to 93.20 after the Beige Book release.The EUR/USD moved higher to re-test Monday’s highs.
The Canadian dollar, on the other hand, gave back all of this morning’s gains by returning back below parity against the U.S. dollar. The USD/CAD is at .9989.
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