Posted on: 13 November 2015, by: Pepperstone Support, category: Market Review
US Initial jobless claims unchanged at 276k vs a consensus decline to 270k while continuing claims grew to 2.174m vs a consensus decline to 2.16m. Liquidity was scarce as equity weakness persisted across US markets. It was also a tough day for commodities as WTI traded down to a low of 41.52 as global oversupply shows few signs of abating.
The FX mover of the day was EURUSD, rallying back up from 1.07 through 1.08. Notes from Draghi’s speech during the London session showed dovishness as he emphasized that downside economic risks are ‘clearly visible’ and that signs of core inflation have weakened. He also added that the QE program will continue through September 2016 “if needed” also noting that other tools are also available within the ECB mandate. The heavy selling which pressured the EUR under 1.07 saw quite the reversal as NY walked in.
The day saw many fed speakers, yet few surprises. Comments from Yellen, Dudley, Lacker, Bullard, and Evans hit the tape but none deviating from their usual rhetoric nor delivering any fresh indications about a December move
USDCAD was able to break above highs set back in early October - trading towards 1.3340 - but the pair failed to hold 1.33 trading back under despite the leg lower in energy.
Ahead on the calendar, we have JPY industrial production, EZ regional GDP and CPIs and trade balance, US retail sales and consumer sentiment.