By FXEmpire.com
Markets remain in risk aversion mode, with Greece and the Euro the main topic of conversation. Traders paid little to no attention to eco data released today and tomorrow will be a very light day, so politics and economics will get all the press coverage.
In the FOMC minutes released yesterday, most of the policymakers stated that the central bank need to go for more stimulus measures in order to boosted the US economy. Many official members stated that additional monetary policy adjustments could be necessary if the economic recovery lost momentum and lead downside risks to the outlook.
US Building Permits declined to 0.72 million in April as against 0.77 million in March. Housing Starts increased to 0.72 million in last month from 0.70 million in March.
Capacity Utilization Rate in the US rose to 79.2 percent in April compared to 78.4 percent a month ago. Industrial Production rose by 1.1 percent in prior month with respect to decline of 0.6 percent a month earlier. Mortgage Delinquencies was at 7.40 percent in Q1 of 2012 when compared to 7.58 percent of Q4 of 2011.
Manufacturing activity in the Philadelphia-region contracted for the first time in eight months in May, adding to concerns over the pace of the U.S. economic recovery, official data showed on Thursday. In a report, the Federal Reserve Bank of Philadelphia said that its manufacturing index dropped by 14.3 points to minus 5.8 in May from April’s reading of 8.5.
Despite favorable housing starts and industrial production data from the US yesterday, the global markets traded lower on the back of rising uncertainty over Greece issues which also worsened the Europe’s debt crisis.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended May 11 rose by 61 billion cubic feet, above expectations for an increase of 55 billion cubic feet. Inventories rose by 86 billion cubic feet in the same week a year earlier, while the five-year average change for the week is an increase of 91 billion cubic feet, according to U.S. Energy Department data.
The US Dollar (DX) strengthened around 0.3 percent on Wednesday and touched an intra-day high of 81.75 yesterday. Additionally, decline in Euro also acted as a positive factor for the dollar. The index ended its trading session at the level of 81.59 on Wednesday.
Italian Trade Balance was at surplus of 3.06 billion Euros in March from previous deficit of 1.14 billion Euros a month ago. Consumer Price Index (CPI) remained unchanged at 2.6 percent in April. Core CPI also remained unchanged at 1.6 percent for the month of April. European Trade Balance was at surplus of 4.3 billion Euros in March from earlier surplus of 4 billion Euros a month earlier.
Japan’s Prelim Gross Domestic Product (GDP) was at 1 percent in the first quarter (Q1) of 2012. Prelim GDP Price Index declined by 1.2 percent in Q1 of 2012 from previous decline of 1.9 percent in Q4 of 2011.
UK’s Claimant Count Change declined by 13,700 in last month from previous fall of 5,400 in March. Unemployment Rate declined to 8.2 percent in March as against 8.3 percent in previous month. Average Earnings Index was at 0.6 percent in March compared to 1.1 percent a month earlier.
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Originally posted here
