[column size=”1-2″ last=”0″ style=”1″] The Beige Book survey is based on 12 district’s reports collected on or before August 20th. The survey is summarized by the Boston Fed into the Beige Book document.
The Beige Book report gives the Fed a specific assessment on the current state of the 12 districts. With this information, policies makers have evidence to work with for the upcoming Sept 12th-13th meeting.
This statement, early in the document, opens the report on a good note for the Dollar: “Reports from the twelve Federal Reserve Districts suggest economic activity continued to expand gradually in July and early August across most regions and sectors.”
More assuring words for the Dollar were: “Most Districts indicated that retail activity, including auto sales, had increased since the last Beige Book report…”. [/column]
[column size=”1-2″ last=”1″ style=”2″] There was no mention of the QE3 in the Beige Book but hopes are high for investors to hear about it this Friday when Bernanke speaks in Jackson Hole, Wyoming. Many economists do not believe Bernanke will mention the possible QE3 in Jackson Hole, although no one can say for sure. Whether he does, or doesn’t, the speech is still worth listening to because future monetary policy could still be discussed.
If he does mention anything regarding moving forward with the stimulus, my thoughts will be “short the dollar!”. Bernanke could be saving that information for the next FOMC meeting in a couple weeks.
More positive news for the dollar today was that Crude Oil Inventories were at their highest today since April.
Check out the recent EURUSD chart below.[/column]
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