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Friday, August 04, 2006

Bernake Ideas look confirmed for a PAUSE

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The faltering payroll data come after a weaker than expected Q2 GDP report and thus confirms Bernanke's outlook of weaker growth and the bond market's recent rally.
Payrolls have averaged 112K for the past four months, after averaging 176K for Q1 and that's a definitive sign of moderation in the economy

The dollar continues to slide across the board, around a near 15-month low versus sterling and dropping one full yen, while the euro rallied near almost a full cent.

The odds of a rate hike at next Tuesday FOMC stand at just 15% or 85% of a pause.

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