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3 Nov 2015
US shows mixed lending activity - MUFG
FXStreet (Delhi) – Derek Halpenny, Research Analyst at MUFG, notes that the quarterly Loan Officer Survey from the Federal Reserve results were mixed with the standout highlight the fact that demand for Commercial and Industrial loans fell for the first time since Q1 2012.
Key Quotes
“There is no necessary conclusion to be made here but if anything it suggests that business investment spending is unlikely to strengthen from the current relatively subdued pace. We believe monetary policy uncertainty can’t be helping with companies not knowing what the market response will be to the first rate increase possibly undermining appetite for new loans.”
“The information flow for the US dollar this week is more about Fed speakers than economic data until Friday when we get the key US employment report. The ISM Manufacturing data has lost some of its allure for the markets given the correlation with real GDP has been poor and the close to unchanged level yesterday resulted in a muted reaction. The ADP employment report will be important tomorrow in terms of what it tells us about Friday. But in reality, this week data-wise is all about Friday.”
Key Quotes
“There is no necessary conclusion to be made here but if anything it suggests that business investment spending is unlikely to strengthen from the current relatively subdued pace. We believe monetary policy uncertainty can’t be helping with companies not knowing what the market response will be to the first rate increase possibly undermining appetite for new loans.”
“The information flow for the US dollar this week is more about Fed speakers than economic data until Friday when we get the key US employment report. The ISM Manufacturing data has lost some of its allure for the markets given the correlation with real GDP has been poor and the close to unchanged level yesterday resulted in a muted reaction. The ADP employment report will be important tomorrow in terms of what it tells us about Friday. But in reality, this week data-wise is all about Friday.”