US Jobless Claims Impressive Again, Dollar Corrects Higher
- US initial jobless claims released by the US Department of Labor registered a decline from 288K to 287K.
- Similarly, the US continuing jobless claims released by the US Department of Labor registered a decline from 2.402M to 2.381M.
- Canadian New Housing Price Index (NHPI) released by the Statistics Canada registered an increase of 0.3%, compared with no gain in the previous month.
- German trade balance released during the London session missed the mark and registered a softer than expected reading of €17.5B.
- Bank of England announced interest rates and kept it as it is at 0.5%. There was also no change in the asset purchases as expected.
- GBPUSD climbed a touch higher above the 1.6200, but post jobless claims traded lower.
US Initial Jobless Claims
Earlier during the start of the NY session, the US initial jobless claims were released by the US Department of Labor. The market was expecting the advance figure for seasonally adjusted US initial jobless claims to rise from 287K to 294K in the week ending October 4. However, the outcome was very positive, as the jobless claims declined from the previously revised reading of 288K to 287K. So, there was no rise in the US jobless claims. The advance seasonally adjusted US continuing jobless claims for the week ending September 27 also declined from 2.402M to 2.381M. This was on the positive side, and the US dollar was also seen trading higher after the release.
The Canadian New Housing Price Index (NHPI) was the next release by the Statistics Canada. The market was expecting an increase of 0.1%, up from the flat reading in July 2014. However, the outcome was a bit better than expected, as the Canadian NHPI rose by 0.3% in August 2014. The report mentioned that the combined metropolitan region of Toronto and Oshawa was the top contributor to the August growth. When we consider on a year-over-year basis, then the Canadian New Housing Price Index (NHPI) climbed by 1.5% in August 2014, compared to the same month of the previous year.
BOE Rate Decision
There was an important release during the London session. The Bank of England announced interest rates and asset purchases program. There was no major change expected from the BOE. The outcome was also as expected, as the BOE kept the interest rates unchanged at 0.5%. The central bank also kept the stock of purchased assets financed by the issuance of central bank reserves at £375 billion. So, there was no change basically.
The GBPUSD pair traded a touch higher above the 1.6200 area, but it looks like buyers failed to gain momentum above the mentioned area. As of writing, the pair is trading back below the 1.6200 and heading towards the 1.6150 level. There is a major support around the mentioned level, as it acted as a resistance and support on a number of occasions. On the upside, a daily close above the 1.6210 level might call for more gains in the near term.
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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
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