Posted: Feb 22, 2010 5:00
If the Yellen-Fed had a single refrain this year it would be data dependency but at some point policymakers need to look at the numbers and decide. The pound was the top performer Thursday while USD and CAD lagged. The Fed's Williams and BOJ decision are due later. Both of our adjusted EURUSD and GBPUSD neared their final targeta as was confirmed in this week's Premium ideas and charts. EURGBP was stopped out.
Data dependency is more of a question than an answer. Since the Fed has hammered home the point about waiting for good news to hike, the numbers have been almost uniformly soft. It was underscored once again on Thursday with the Philly Fed at 6.7 compared to 8.0 expected, the Markit PMI at a 14-month low, existing homes sales at 5.04m vs 5.23m expected and initial jobless claims fractionally soft.