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Tighter US Financial Conditions To Hurt US Data Momentum?

MARKET INSIGHT

Softer US data outcomes, underpinned by the overnight ISM reading, has taken the Citi US EASI off its recent highs. The chart below overlays the EASI against the Goldman Sachs financial conditions index for the US. Tighter US financial conditions, which is presented as a 6 month rate of change on the chart, suggests the balance of risks rests with further downside in US data outcomes relative to expectations.

  • More data prints are out tonight with factory orders and durable goods data due. The main focus is likely to be on Friday's jobs print though. To date, fresh softness in US data outcomes has been more in survey outcomes rather than hard data.

Fig 1: Citi US EASI Versus Goldman Sachs US FCI

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Softer US data outcomes, underpinned by the overnight ISM reading, has taken the Citi US EASI off its recent highs. The chart below overlays the EASI against the Goldman Sachs financial conditions index for the US. Tighter US financial conditions, which is presented as a 6 month rate of change on the chart, suggests the balance of risks rests with further downside in US data outcomes relative to expectations.

  • More data prints are out tonight with factory orders and durable goods data due. The main focus is likely to be on Friday's jobs print though. To date, fresh softness in US data outcomes has been more in survey outcomes rather than hard data.

Fig 1: Citi US EASI Versus Goldman Sachs US FCI

Keep reading...Show less