Daily Market Color 08/19/2013

Daily Market Color

08/19/2013

Economic Reports & Headlines

The economic calendar is light today with virtually no reports scheduled for release on the domestic front. Only bill auctions are happening today.

Later on this evening, the Reserve Bank of Australia will be releasing the minutes from their most recent meeting.

Future Reports

Japan’s All Industry index will be released at 12:30am. The report gives market participants a read on production in all sectors of the Japanese economy.

Germany’s producer price index will be released tomorrow at 2:00am. The report measures the growth in prices of raw materials and industrial products in the country.

Trades

The talk of the Federal Reserve tapering is becoming somewhat of a broken record.  Tapering is not a real threat in my opinion since inflation and unemployment failed to reach the threshold that was set by monetary policy makers. Do we expect the unemployment rate to decline 40 basis points and inflation to spike upwards by 100 basis points in a month? Or do we expect the Federal Open Market Committee to renege on the thresholds they currently have in place? The possibility of tapering next month is nonexistent. I look forward to putting on a trade shortly after the Fed’s meeting in September.