Intraday Market Thoughts

UK Jobless Edges up, US Sales Down, FOMC Next

by Patrik Urban
Nov 14, 2012 13:48

UK labor market data mixed; MPC sees higher CPI; Eurozone industrial production fell; JPY declines due to politics. The surprise decline in US retail didnt stop S&P futures from gaining 5 pts at time of writing. Market turns to the FOMC meeting minutes. Latest Premium Insights are due at the London close.Both GBPUSD sorts hit all targets, while 1 of 2 EURUSD dual trades hit all targets and the 2nd in progress from the latest Premium Insights.

The greenback was initially losing across the board except JPY but as the session progressed, the buck was able to regain lost ground and currently trades stronger against most majors. European equities are losing around 0.3% and the weakest currency is JPY.

UK jobless claims rose sharply in October to 10.1K from previous 0.8K which is the fastest increase in over a year. At the same time, the ILO unemployment rate ticked lower to 7.8% from 7.9%. The BOE inflation report showed the MPC adjusted its CPI forecasts higher - CPI should reach 1.8% in two years and 1.9% in three years. GBPUSD initially pushed higher to 1.5901 but quickly sold off to current 1.5865.

JPY declined across the board on PM Noda's comments that he could dissolve the House of Representatives on Friday if the opposition agreed to plans to reduce the number of the seats and lower lawmakers' salaries, MNI reports. USDJPY pushed above the 80.00 handle and EURJPY touched 102.00.

In other news, Swiss ZEW economic expectations improved marginally to -27.9 from -28.9; Eurozone industrial production dropped 2.5% in September after growing 0.9% in August and Greek 3Q GDP contracted 7.2% after falling 6.3% in Q2. EURUSD trades around 1.2735.

US October retail sales fell 0.3% worse than the expected decline of 0.2% following revised increase of 1.3%. Sales less autos were flat vs the expected +0.2% following 1 .2% increase. Oct PPI fell 0.2% vs ex +0.2% following the oil driven +1.1%. Markets will then wait for the latest FOMC minutes that are due at 2:00 pm.

Both GBPUSD sorts hit all targets, while 1 of 2 EURUSD dual trades hit all targets and the 2nd in progress. USDJPY stopped out. 1 of 2 CADJPY stopped out, the other in progress. AUDUSD remains in progress. EURJPY stopped out. GBPUSD hit all targets. EURGBP stopped out. (stopped out by 20 pips). 1 gold short stopped out after missing final limit by $3 and the other short remains in progress. 1 silver in progress. 1 oil long stopped out. DIRECT ACCCESS Nonsubscribers can click here to join


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