Intraday Market Thoughts

UK Jobless Next, USDX Holds on Above 80

by Kyle Morrison
Dec 14, 2011 9:17

UK unemployment set to increase further, Italy to sell bonds, EZ Industrial production to flat line, Swiss prices and ZEW set to remain weak. Of Tuesdays 13 new trades, 5 hit all targets, 4 in progress, 1 stopped out and 3 remain unfilled.

Yesterdays FOMC meeting damaged the already sold off euro as Bernanke & company were in no rush to implement further QE. This drove the US dollar index above 80 for the 1st time since January and the index is set to post its second monthly increase, the longest winning streak since April-May 2010.

UK Nov claimant count is due next, expected to increase by about 14k, well above the previous 5.3k. ILO 3 month unemployment rate is seen remaining unchanged at 8.3%. .

Euro had already been under pressure in any case on the back of fears about further ratings downgrades as well as Merkels comments about the new ESM fund. Concerns about rising bond yields in Italy and Spain remain at the forefront of investor concerns and todays auction of 3bn 2016 Italian bonds will come under scrutiny.

As will the latest Eurozone industrial production data for October and is expected to slip back from 2.2% to 2.1% on an annualised basis, with the monthly figure expected to come in flat after Septembers sharp 2% drop.

Swiss import prices fell 0.8% in Oct vs the expected 0.3% following -0.2%, while falling 2.4% annually following a 1.8% decline . This weeks downgrade of Swiss GDP growth for 2012 was an unwelcome reminder of how the high value of the Swiss franc was impacting the economy in Switzerland.

Of Tuesdays 13 new trades, 5 hit all targets (2 EURUSD, 1 EURJPY & 2 ES), 4 are in progress (gold, silver USDCAD and CL_F) , 1 stopped out (CL_F) and 3 remain unfilled. For direct access to these trades, click here: http://ashraflaidi.com/products/sub01/access/?a=569

Non-subscribers can get a free trial here http://ashraflaidi.com/products/sub01/

 
 

Latest IMTs