Of course, he’s talking his book, but more than likely he has it right, saying it is unlikely the Fed will hike rates this year. The market got a bit excited earlier this week at the notion that a hike could come before year-end but those hopes have moderated. Further, El-Erian says the dollar could be embarking on a long-term multi-year erosion of its international standing. Sounds like they are limit-long bunds as well! EUR/USD trades at NY session highs of 1.4078 after the comments.
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Pimco’s El-Erian: Fed unlikely to raise rates this year
June 12 2009, 7:14pm | Comments »
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China May Industrial Output +8.9%, Retail Sales on year +15.2%
As Leaked to the press the other day, China’s May Industrial Output came in at +8.9%. Forecast was +7.5%. The data provides further confirmation that the governments spending and partial recovery in exports are proving supportive for manufacturers. Retail Sales +15.2% yr/yr. Market expectations were +14.7$.
June 12 2009, 5:08am | Comments »
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