Market Roundup
•US Initial Jobless Claims 231K ,212K forecast, 208K previous
•US Continuing Jobless Claims 1,785K .1,790K forecast, 1,774K previous\
•US Jobless Claims 4-Week Avg. 215.00K ,210.00K previous
•US Natural Gas Storage79B, 87B forecast, 59B previous
•US Fed's Balance Sheet 7,353B ,7,362B previous
Looking Ahead Economic Data(GMT)
•22:30 New Zealand Apr Business NZ PMI 47.1 previous
•23:30 Japan Mar Household Spending (YoY) -2.3% forecast, -0.5% previous
•23:30 Japan Mar Household Spending (MoM) -0.3% forecast,1.4% previous
•23:30 Japan Mar Adjusted Current Account 2.04T forecast, 1.37T previous
•23:30 Japan Mar Current Account n.s.a. 3.489T forecast,2.644T previous
•23:30 Japan Apr Bank Lending (YoY) 3.1% forecast,3.2% previous
• 05:00 Japan Apr Economy Watchers Current Index 50.4 forecast, 49.8 previous
Looking Ahead Events And Other Releases
•No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened against dollar on Thursday as dollar weakened against most currencies after economic data showed more signs of softening in the U.S. labor market. Weekly initial claims for state unemployment benefits increased 22,000 to a seasonally adjusted 231,000, the highest level since the end of last August and above the 215,000 expected by economists in a Reuters poll.The data followed last week's weaker-than-anticipated U.S. payrolls report and other data that showed job openings fell to a three-year low in March. The euro rose 0.34% to $1.0781 .Immediate resistance can be seen at 1.0810(38.2% fib), an upside break can trigger rise towards 1.0888(23.650% fib).On the downside, immediate support is seen at 1.0731 (50% fib), a break below could take the pair towards 1.0674(61.8% fib).
GBP/USD: The pound strengthened on Thursday after economic data indicated further signs of a weakening U.S. labor market. The pound had dropped to a low of $1.2446, its weakest level since April 24, after the Bank of England (BoE) paved the way for an interest rate cut.The BoE's Monetary Policy Committee had voted 7-2 to keep the central bank's key policy rate at a 16-year high of 5.25%, with Deputy Governor Dave Ramsden joining Swati Dhingra in voting for a cut to 5%. BoE Governor Andrew Bailey said it was possible the central bank would need to cut rates by more than investors expect. Immediate resistance can be seen at 1.2558 (38.2%fib), an upside break can trigger rise towards 1.2602(23.6 % fib).On the downside, immediate support is seen at 1.2502 (50% fib), a break below could take the pair towards 1.2457 ( 61.8% fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as the greenback posted broad-based declines and ahead of domestic jobs data that could offer clues on the timing of Bank of Canada interest rate cuts.The loonie was trading 0.3% higher at 1.3677 per U.S. dollar, or 73.12 U.S. cents. U.S. dollar opens new tab lost ground against a basket of major currencies after economic data showed the number of Americans filing new claims for unemployment benefits increased more than expected last week. Canada's employment report for April, due on Friday, is expected to show the economy adding 18,000 jobs and the unemployment rate increasing to 6.2%.Immediate resistance can be seen at 1.3728 (23.6% fib), an upside break can trigger rise towards 1.3760 (May 8th high).On the downside, immediate support is seen at 1.3676 (38.2% fib), a break below could take the pair towards 1.3623(50% fib).
USD/JPY: The U.S. dollar eased slightly against yen on Thursday after larger-than-expected rise in U.S. weekly jobless claims data. The number of Americans filing new claims for unemployment benefits rose last week to the highest level in more than eight months.The weekly jobless claims report from the Labor Department on Thursday, the most timely data on the economy's health, followed news last week that the economy added the fewest jobs in six months in April, while job openings dropped to a three-year low in March.Ebbing labor market momentum has put two interest rate cuts from the Federal Reserve this year back on the table. Financial markets expect the Fed to start its easing cycle in September. Strong resistance can be seen at 155.85 (38.2%fib), an upside break can trigger rise towards 156.38(2nd May high).On the downside, immediate support is seen at 154.34(50% fib), a break below could take the pair towards 152.74(61.8% fib).
Equities Recap
Europe's benchmark index inched up to close at a record high on Thursday, driven by a jump in industrial stocks, while shares of Spanish bank BBVA hit a two-month low after announcing a hostile takeover bid for smaller rival Sabadell.
UK's benchmark FTSE 100 closed up by 0.33 percent, Germany's Dax ended up by 0.98 percent, France’s CAC finished the day up by 0.69 percent.
The Dow Jones Industrial Average closed higher on Thursday, the seventh straight daily advance for the benchmark, as all three major U.S. indexes gained after weekly jobless claims data offered fresh hope for interest-rate cuts.
Dow Jones closed up by 0.85% percent, S&P 500 closed up by 0.51% percent, Nasdaq settled up by 0.27% percent.
Commodities Recap
Gold prices rose more than 1% after the new unemployment claims data reinforced rate cut bets.
U.S. gold futures for June delivery settled 0.8% higher at $2,340.30 per ounce.
Oil prices edged up to a one-week high on Thursday on data from China and the U.S. signaling demand in the world's two biggest crude-consuming nations could climb.
Brent futures rose 30 cents, or 0.4%, to settle at $83.88 a barrel, while U.S. West Texas Intermediate crude rose 27 cents, or 0.3%, to settle at $79.26.
