The USD essentially traded in range on Wednesday as caution seeped into the broad market place. Wall Street was not able to maintain its momentum from the first two days of trading this week and experienced a choppy day. Retail Sales data proved rather negative and this was followed by the FOMC Meeting Minutes publication which outlined a lack of faith from within the Federal Reserve regarding the prospects for growth. The FOMC release underscored what many analysts and investors have been saying, that the economy is starting to exhibit signs of struggling and glimmering prospects are likely not around the corner. Today the U.S. will release weekly Unemployment Claims and the number is projected to be 448K, which would be only a slight improvement on last week’s result of 454K.
Also today the Empire State Manufacturing Index and Philly Fed Manufacturing Index will both be published. The readings are anticipated to be mixed with New York’s numbers below the previous outcome, and the Philly data expected to be a trace better. Quarterly earnings will continue to come from the corporate front today and investors will obviously remain vigilant about Wall Street. Tomorrow’s Prelim Consumer Sentiment from the University of Michigan is not forecasted to cheer traders. The question that lurks is what will happen if the estimates come in worse than already anticipated with today’s and tomorrow’s data. Risk sentiment clearly remains on a razor’s edge and the USD should experience opportunistic and interesting movement the next two days.
Written by bforex.com
