- US initial jobless claims fell from the previously revised reading of 295K to 287K.
- US Continuing Jobless Claims also fell to 2,398K whereas the market was expecting a rise to 2,438K
- Spanish unemployment change figure came in better than expected with a reading of 19.7K, whereas the market was expecting it to be around 31.3K.
- GBPUSD completely ignored better than expected UK construction PMI, as it climbed from 64.0 to 64.2.
- ECB kept the interest rates unchanged. EURUSD pair was unmoved after the release and waiting patiently for Draghi’s remark for a move.
US Initial Jobless Claims
The US Initial Jobless Claims was released by the US Department of Labor about an hour ago. The market was expecting an increase of 4000 this time around. However, the outcome was better than expected, as the US Initial Jobless Claims fell by 8K in the week ending September 27 on the seasonally adjusted basis. There was a revision in the previous reading as well, as the US Initial Jobless Claims for the last week was revised up from 293K to 295K. So, the net decline was more if we consider the revision. The 4-week moving average is now around 294,750, which is 4,250 less than the previous week's revised average. Moreover, the insured unemployment (continuing jobless claims) was 2,398,000 during the week ending September 20, which is the lowest since June 17, 2006. So, overall the outcome was on the positive side, but the reaction from the US dollar was not encouraging.
The US Challenger Job Cuts data was also released earlier today by the Challenger, Grey & Christmas. The report mentioned that the US Challenger Job Cuts lowest level in 14 years in September 2014, and registered a reading of 30,477 during the month. The most important thing to note is that the September total was 24% lower than the one announced in August. There was hardly any reaction from the US dollar, as the investors were not seen willing to jump into positions ahead of the key risk events lined up later.
UK Construction PMI
The UK construction PMI was the highlight during the London session, which was released by the Chartered Institute of Purchasing & Supply and Markit Economics. The market was expecting the UK construction PMI to fall this time from 64.0 to 63.5. However, the end result was way above the expectation, as the UK construction PMI rose to 64.2 in September 2014 from the previous month reading of 64.0. The report highlighted that the UK managed to register strong output growth across the construction sector, which was mainly driven by increases in housing, commercial and civil engineering activity.
The GBPUSD pair did not like the outcome at all, as it was seen trading lower after the release. It fell by more than 80 pips, and even broke the last low of 1.6165 to challenge the 1.6140 support area. Let us see how the pair trades in the coming hours and whether it can manage to hold 1.6120 or not.
"Patience is the key for success"
Oliver Miller is one of the best financial analyst with 18 years of online trading experience
UK Nationwide Housing Prices highlighting the value of the houses prices in UK and indicate current movements in the housing market posted an increase of 1% in April, compared to the preceding month.
US dollar continued to weaken against a few currencies and managed to recover some ground against currencies like the Euro and the British Pound
Taking into account today’s volatile economy GTCM endeavors to provide its clients with a secure trading environment and strong financial services. We aim to establish a strong relationship with our customers by providing them with ease, transparency and accountability on all their account activities
Banc De Binary is home to the 21st century investor. Founded in the wake of the 2008 financial crisis, we set out to provide the simplest, most profitable trading solutions, and have built a following among customers in over 80 countries worldwide. Today, we provide access to the financial markets via our online binary options platform to 250,000 account holders. As a World Finance listed company and multi award-winning firm, we are proud to be able to guarantee a safe and risk-controlled environment for all our valued clients.
HY Markets is a market leader in providing retail and institutional investors with access to foreign exchange and other capital markets. With HY Markets you can trade forex, metals such as gold and silver, energy products such as US oil and natural gas, commodities, indices as well as stocks, all from a single integrated account.
Ikon Markets are an online trading service provider affiliated to the Ikon Group, an acclaimed global network for online financial trading. Prior to the introduction of our online segment. We, at Ikon, have had many years of experience in providing financial trading services to institutional investors, such as banks, large financial institutions and mutual fund companies.