Thursday, May 29, 2014

US consumer EUR/USD-- USD/JPY

Traders should be prepared for some movement from EUR/USD later on Thursday, as the US releases three market movers  Preliminary GDP, Unemployment Claims and Pending Home Sales. The markets are expecting a decline in the GDP reading, something which hasn’t occurred since 2009. Will the indicator surprise the markets with a gain in Q1? Pending Home Sales are expected to soften in April, while Unemployment Claims are expected to improve this week, after a disappointing performance in the previous release.
The  continues to be optimistic, which is good news for the US recovery. On Tuesday, CB Consumer Confidence continued to look strong as the key indicator improved to 83.0 points in April, which was within expectations. This was the third straight reading above the 80-point level. Meanwhile, the Standard & Poor/Case-Shiller house price index posted a strong gain of 12.4%, surpassing the estimate of 11.9%. The markets are keeping a close eye on Thursday’s events, with the release of Preliminary GDP and the all-important Unemployment Claims.
The Japanese yen is stable on Thursday, as USD/JPY trades in the high-101 range early in the North American session. On the release front, it’s a busy day in both Japan and the US. Japanese Retail Sales slumped in April, posting its sharpest decline in three years. Later in the day, we’ll get a look at Household Spending, Tokyo Core CPI and Preliminary Industrial Production. In the US, Unemployment Claims dropped sharply, while Preliminary GDP posted a rare decline. We’ll get a look at Pending Home Sales later on Thursday.