Market Update – 27th May 2016 – U.S Unemployment Claims Continue To Fall Ahead Of GDP Figures

  

U.S weekly unemployment claims continue to shrink with the latest data released overnight showing fewer claims than economists had predicted. In total the number of people who filed for unemployment benefits for the first time was 268,000, well below figures of 300,000-400,000 we were seeing only a few years ago. The data which is released every 7 days follows a similar pattern to that of the unemployment rate which under Obama’s administration has dropped from a staggering high of 10.2% to 5%.

U.S equities were pretty flat overnight, perhaps on expectations that the continued strong economic data could bring higher interest rates. European equities on the other hand staged a third day of gains with the German DAX and French CAC leading the way up around 0.66%. Iron ore prices fell about 5% but remain above the key psychological level of US$50 a tonne.

US Prelim GDP is released tonight with expectations around the 0.8% mark. Obviously a bumper figure will boost the Greenback and see AUD/USD perhaps again test the low 0.7100’s.

DATA RELEASES TODAY:

USD – Prelim GDP q/q at 10.30pm

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Patrick Downes

Senior Corporate FX Dealer

 

Compass Markets

Contact Patrick for a quote on 0431 278 632 or 03 9099 8459

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