US data came out lower than expected once again yesterday. The NY Empire State manufacturing Index was 4.48 instead of the expected 9. The S&P 500 gained 0.12% as investors expect the Federal Reserve to keep the stimulus in place and not taper further. The Dow Jones, however, declined 0.15% after Coca Cola reported a decline in fourth- quarter profits. Asian stocks were mixed following expectations of stronger growth in China pushing the Hang Seng 0.34% higher. The Nikkei lost 0.52% after rallying on Tuesday as the Yen made gains against the US Dollar. Investors should watch the Chinese HSBC Manufacturing PMI on Thursday at 1.45am (GMT). European stocks opened with little change as investors wait for UK jobless figures and the MPC Meeting Minutes at 09.30am (GMT).
WTI reached a four week high amid speculation that stockpiles in the US have decreased due to the bad weather. A new winter storm hit the northeastern U.S. and further spurred speculation that demand for heating fuel would continue to rise. The American Petroleum Institute will release its inventories report at 9.30pm (GMT). After reaching a 3 month high, Gold is now trading choppy. Investors are cautious ahead of the FOMC Meeting Minutes today at 7pm (GMT). There is uncertainty regarding whether the minutes will show that the Fed backed further cuts to stimulus as consistent bad data could be the result of bad weather or a slowdown in the US economy. Fed Chair Janet Yellen indicated that the central bank is on track to maintain the pace of reductions to its stimulus program, as long as the economy continues to improve as expected. If the report shows support for the same pace of tapering ($10 billion/month) the price might drop back below 1,300.
Today’s Main Events:
09.30 GMT: GBP – Claimant Count Change – measures the change in the number of unemployed people in the U.K. during the reported month. A rising trend indicates weakness in the labor market, which has a trickle-down effect on consumer spending and economic growth
09.30 GMT: GBP – MPC Meeting Minutes – a detailed record of the Bank of England’s policy setting meeting, containing in-depth insights into the economic conditions that influenced the decision on where to set interest rates. The breakdown of the MPC members’ interest rate votes tends to be the most important part of the minutes.
13.30 GMT: USD – Building Permits – measures the change in the number of new building permits issued by the government. Building permits are a key indicator of demand in the housing market
13.30 GMT: USD – PPI – measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation
19.00 GMT: USD – FOMC Meeting Minutes – a detailed record of the committee’s policy-setting meeting held about two weeks earlier. The minutes offer detailed insights regarding the FOMC’s stance on monetary policy, so currency traders carefully examine them for clues regarding the outcome of future interest rate decisions.
February 19, 2014 – Daily Market News
Today’s Hot Assets: GBP, USD, Gold
US data came out lower than expected once again yesterday. The NY Empire State manufacturing Index was 4.48 instead of the expected 9. The S&P 500 gained 0.12% as investors expect the Federal Reserve to keep the stimulus in place and not taper further. The Dow Jones, however, declined 0.15% after Coca Cola reported a decline in fourth- quarter profits. Asian stocks were mixed following expectations of stronger growth in China pushing the Hang Seng 0.34% higher. The Nikkei lost 0.52% after rallying on Tuesday as the Yen made gains against the US Dollar. Investors should watch the Chinese HSBC Manufacturing PMI on Thursday at 1.45am (GMT). European stocks opened with little change as investors wait for UK jobless figures and the MPC Meeting Minutes at 09.30am (GMT).
WTI reached a four week high amid speculation that stockpiles in the US have decreased due to the bad weather. A new winter storm hit the northeastern U.S. and further spurred speculation that demand for heating fuel would continue to rise. The American Petroleum Institute will release its inventories report at 9.30pm (GMT). After reaching a 3 month high, Gold is now trading choppy. Investors are cautious ahead of the FOMC Meeting Minutes today at 7pm (GMT). There is uncertainty regarding whether the minutes will show that the Fed backed further cuts to stimulus as consistent bad data could be the result of bad weather or a slowdown in the US economy. Fed Chair Janet Yellen indicated that the central bank is on track to maintain the pace of reductions to its stimulus program, as long as the economy continues to improve as expected. If the report shows support for the same pace of tapering ($10 billion/month) the price might drop back below 1,300.
Today’s Main Events:
09.30 GMT: GBP – Claimant Count Change – measures the change in the number of unemployed people in the U.K. during the reported month. A rising trend indicates weakness in the labor market, which has a trickle-down effect on consumer spending and economic growth
09.30 GMT: GBP – MPC Meeting Minutes – a detailed record of the Bank of England’s policy setting meeting, containing in-depth insights into the economic conditions that influenced the decision on where to set interest rates. The breakdown of the MPC members’ interest rate votes tends to be the most important part of the minutes.
13.30 GMT: USD – Building Permits – measures the change in the number of new building permits issued by the government. Building permits are a key indicator of demand in the housing market
13.30 GMT: USD – PPI – measures the change in the price of goods sold by manufacturers. It is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation
19.00 GMT: USD – FOMC Meeting Minutes – a detailed record of the committee’s policy-setting meeting held about two weeks earlier. The minutes offer detailed insights regarding the FOMC’s stance on monetary policy, so currency traders carefully examine them for clues regarding the outcome of future interest rate decisions.
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