WTI crude is unchanged on Wednesday, trading at $43.63 a barrel in the European session. In economic news, there are no economic releases out of the US, as the markets are closed for Veterans Day. On Thursday, we could more movement on the markets, as the US releases Unemployment Claims. As well, Federal Reserve head Janet Yellen speaks at event in Washington.
The US dollar posted broad gains late last week, following the strong NFP reading, which crushed the estimate and increased the likelihood of a December rate hike by the Federal Reserve. Still, traders should keep in mind that the Fed has been split over a rate hike, and many members will be hesitant to vote in favor of raising rates unless they are confident that the US economy can withstand an interest rate hike. Employment numbers out of the US have certainly improved, with recent indicators such as the unemployment rate pointing to close to full employment in the US economy. At the same time, other indicators have not fared as well, particularly manufacturing data and inflation levels. While a rate hike in December is again on the table, it is by no means a done deal, making for plenty of speculation on the part of markets players in the next several weeks.
With the stellar performance by US Nonfarm Payrolls, the markets will be looking for more good news from US employment numbers. Strong job numbers not only point to a solid US economy, but will increase the likelihood of a rate increase in December, an event which would likely send the greenback to higher levels against its rivals. We’ll get a look at unemployment claims on Thursday, with the key indicator expected to drop to 270 thousand. Although last week’s reading of 276 thousand was higher than expected, the four-week indicator, which is less volatile than the weekly measurement, remains at its lowest level since December 1973. A strong reading from unemployment claims could bolster the US dollar.
Wednesday (Nov. 11)
- There are no releases as markets are closed for Veterans Day
Upcoming Key Releases
Thursday (Nov. 12)
- 13:30 US Unemployment Claims. Estimate 270K
- 14:30 Federal Reserve Chair Janet Yellen Speaks
*Key releases are highlighted in bold
*All release times are GMT
WTI/USD for Wednesday, November 11, 2015
WTI/USD November 11 at 12:35 GMT
WTI/USD 43.63 H: 44.21 L: 43.54
- WTI/USD posted slight losses in the Asian session and is flat in European trade.
- 42.59 is providing support.
- 44.30 is a weak resistance line.
Further levels in both directions:
- Below: 42.59, 39.87 and 37.75
- Above: 44.30, 47.04, 49.06, and 53.86
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