14 July, AtoZForex – Today’s US data impressed, as the US jobless claims held steady, while the US PPI recorded its highest gain in a year. Unexpectedly, the number of US residents to file for unemployment benefits remained at last week’s lower levels.
– US weekly unemployment claims total 254,000 vs 265,000 forecast
As the US jobless claims held steady, it indicates that there is further momentum in the US labor market, post the June job growth. It marks the longest stretch of a healthy labor market since 1973, with 71 consecutive weeks.
US producer prices recorded its biggest gain in a year
– June US PPI Prior was at -0.1% year-on-year
– Prices up 0.5% month-on-month vs 0.3% exp
-June US PPI Ex food and energy +1.3% year-on-year vs +1.0% exp
-While on month-on-month it was +0.4% m/m vs +0.1% exp
It marks the largest increase in US PPI since May 2015, post the gain of 0.4 percent in May. The rise in US PPI indicates a steady build-up in inflation, considering that the drag from a strong USD and low oil prices fades.
As the positive US data hit the market, USD started its appreciation rally.
At the moment our preferences are based on bearish EURUSD and GBPUSD (supported by the Brexit pressure), while USDCHF and USDJPY are expected to continue their bullish rallies.
Gold is going to be the biggest loser as it was discussed during the AtoZ Forex webinar yesterday. At the moment, the yellow metal has its demand level outlined at the level of psychological $1300 per ounce support level.
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