US unemployment claims the one to watch today
City Index July 18, 2013 1:37 PM
<p>Last night we had the Bernanke Testimony and the Beige Book, which gave USD some strength towards the close after comments that the Fed anticipates […]</p>
Last night we had the Bernanke Testimony and the Beige Book, which gave USD some strength towards the close after comments that the Fed anticipates to begin moderating monthly bond purchases later this year, ending them around mid-2014. This is not a pre-set course, however, and could be delayed if the economy misses its forecasts. The Beige Book confirmed that the US economy is growing at a modest to moderate pace, giving USD strength through a quiet Asian session.
In Asia the S&P affirmed Australia’s AAA credit rating but despite this, AUD is still on the back foot with the strong USD from last night’s comments and bets are still on an up and coming rate cut. The yen has also declined against the USD, with bets that the G-20 are going to endorse BoJ stimulus.
Today we have UK retail sales, expected to be at 0.2% from the previous 2.1%. US Unemployment Claims are expected to come in at 344k from the previous 360k. This will be an important figure today after comments last night that the market could react to any poor data. Bernanke is set to testify again today. The Philly Fed survey is expected to come in at 8.5 from the previous 12.5, but the one to look out for is the unemployment figures as they are expected to be lower than previous estimates and will have an impact in the plans to taper QE later this year.
Supports 1.3070 1.3010 | Resistance 1.31301.3180
Supports 99.50 99.00 | Resistance 100.25 100.50
Supports 1.5160 1.5125 | Resistance 1.225 1.5265