By CountingPips.com
The U.S. Dollar has been on the rise in the forex markets on a day filled with U.S. economic data while the American stock markets have traded close to unchanged today. The dollar has advanced versus the euro, British pound, Canadian dollar, Swiss franc, Australian dollar and the Japanese yen while trading virtually unchanged against the New Zealand dollar,
The U.S. stock markets are having a mixed session today with the Dow gaining over 5 points, the Nasdaq decreasing by over 1 point while the S&P 500 is down by a couple of points. Oil has edged lower to $81.96 while gold has been unchanged at the $1,124.00 per ounce level.
Leading Indicators continue to rise
U.S. economic news releases out of the U.S. today showed that the U.S. Leading Indicators Index published by the Conference Board today increased for the eleventh straight month in February. The Leading Indicator Index, which measures future economic activity, rose by 0.1 percent in February following a 0.3 percent gain in January and a 1.2 percent rise in December. February’s advance matched the market forecasts which were predicting the gain of 0.1 percent for the month.
The coincident index, which is viewed as a measure of the current economic activity, increased by 0.1 percent in February while the lagging index rose by 0.3 percent after declining by 0.2 percent in January.
An economist at the Conference Board, Ken Goldstein commented on the report saying, “The indicators point to a slow recovery this summer. Going forward, the big question remains the strength of demand. Without increased consumer demand, job growth will likely be minimal over the next few months.”
Weekly Jobless Claims edge down by 5,000
A separate government release by the U.S. Labor Department showed that weekly U.S. jobless claims decreased in the week that ended on March 13th. New jobless claims fell to a total of 457,000 unemployed workers, a decrease over the prior week by 5,000 workers. The 4-week moving average of unemployed workers fell by 4,250 from the prior week to a total of 471,250.
Meanwhile, workers seeking continuing claims for unemployment benefits for the week ending March 6th increased for the week. Continuing claims rose by 12,000 workers to a total of 4,579,000 unemployed workers. The four week moving average of continuing claims dropped by 8,000 to 4,575,250.
US Consumer Prices unchanged
U.S. Consumer Prices were unchanged in February as the energy index decreased for the first time in over six months, according to a report released today by the U.S. Department of Labor. The Consumer Price Index, a key measurement of inflation, had increased by 0.2 percent in each of the last five straight months dating back to September 2009 before February’s flat data. Market forecasts were predicting that consumer prices would edge up by 0.1 percent for the month.
The annual rate of increase in consumer prices in February was 2.1 percent higher than the February 2009 level following January’s annual increase of 2.6 percent. The energy index declined by 0.5 percent in February after increasing by 2.8 percent in January. Food prices rose by 0.1 percent in February after a 0.2 percent increase in January and have gained for fours straight months.
The core inflation reading, excluding food and energy prices, increased by 0.1 percent for the month, matching market forecasts expecting a 0.1 percent gain. The annual rate of core inflation increased by 1.3 percent for February following up an increase of 1.6 percent in January.
Philly Fed Manufacturing Business Survey improves in March
The Philadelphia Manufacturing Business Index released today by the Philadelphia Federal Reserve Bank showed that its survey increased in March and has remained in positive territory for the seventh straight month. The Philly general business diffusion index increased to 18.9 in March after February’s score of 17.6. A positive score is considered growth in that business sector while a negative score is considered a contraction.
Continuing to show positive manufacturing levels this month in the business survey were the indexes for general activity, employment, unfilled orders, delivery times and inventories while new orders, future shipments and planned capital spending all fell in March.
EUR/USD Chart – The euro dropping today versus the US dollar in forex trading and breaking through the rising support trendline on the hourly chart. The EUR/USD has touched below the 1.3600 level for the first time in over a week. This pair had advanced to over a one-month high at 1.3818 in yesterday’s early trading, a level not touched since February 9th.
