Need To Know News

NY FED president Geithner was tapped for the TSY secretary job last week.

The search committee consists of Stephen Friedman, chairman of the bank’s board of directors, and two other directors, Charles V. Wait and Denis M. Hughes, according the NY FED. The search committee will engage “very soon” a national search firm to assist in the process.

“The committee will try to complete its work as promptly as it prudently can,” the NY FED said.

The NY FED said Geithner will continue to serve as president for the next several weeks. As reported earlier, his FOMC responsibilities will be assumed by deputy Christine Cumming.

USD continues to trade higher vs. all major currencies with the USD Index, up 1.25% to 86.624, trading just off intraday highs. EUR/USD, down 1.5% to 1.2720, has faced heavy selling pressure the entire day following November Euro-Zone CPI estimate, which revealed a significant drop to a 2.1% year-over-year rate from 3.2% prior. The wider than expected decline in Euro-Zone CPI allows the ECB greater wiggle-room in regard to rates, which has placed a considerably negative tone on EUR today. EUR/USD remains in the lower portion of today’s range below the 9 and 21-Day moving averages which are at near convergence above price at 1.2730.

November NAPM Milwaukee is expected to fall below 40, for the first time since June, following a drop from 46 to 42 in October. Today’s NAPM Milwaukee report may receive more focus than usual as it is the only release out of the US today.