USD gains strength ahead of EU PMI and US unemployment data releases today

<p>The USD gained some strength towards the end of last night after the Fed’s minutes were announced. The main points were that Fed officials will […]</p>

The USD gained some strength towards the end of last night after the Fed’s minutes were announced. The main points were that Fed officials will see predictable QE cuts in the coming months unless there are major economic surprises. There could also be a possible change in forward guidance on rate rises as we near the 6.5% unemployment level.

The main market mover in Asia was the Chinese Flash PMI which has come in at 48.3 at a seven-month low. This is still below the 50 level and shows a contraction and a dip from the last reading at 49.5. This sent AUD lower as usual and JPY higher on a safe haven basis, even with a record Japanese trade deficit highlighting the risk of economic stumble.

Today will be a busy morning in Europe with French and then German PMI releases, both of which are expected to come out under expectations. This is likely to send the euro lower on the back of making new lows. Next up will be the EU PMI figures, which don’t bode well after the two biggest economies put out poor data.

In the US session the Core CPI is due, with no change expected at 0.1% and unemployment claims expected around 335k.  PMI for the US is also due out today and is still expected at 53.6. The Philly Fed manufacturing index is expected at 9.2, with lots of possible swings possible in the data.

In the Asian session the BoJ will be releasing its minutes, which will affect how the JPY plays out.



Supports 1.3690 1.3660 1.3580 | Resistance 1.3760 1.3785 1.3825



Supports 101.55 100.75 99.90 | Resistance 102.00 102.50 102.80



Supports  1.6630 1.6600 1.6570 | Resistance 1.6700 1.6750 1.6820


Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.