USD modestly stronger todayNovember 27, 2013 Posted by: Pete Karabatos
The USD is modestly stronger against most major currencies but the EUR is one exception. The EUR is trading higher after German Chancellor Merkel’s Christian Democratic Union (CDU), their allies the CSU, and Social Democratic Party reached a coalition accord on wages and spending increases without increasing taxes. EUR/JPY hit four year highs. Global stock markets are trading higher today after consumer confidence measures in the U.S. and Germany beat expectations.
• U.S. jobless claims unexpectedly fell to the lowest levels in 2 months for the week ended November 23rd, at 316,000, compared to a median forecast of 330,000.
• German GfK Consumer Confidence came in at 7.4, the highest figure since August 2007.
• Corporate bond spreads in the U.S. are at the lowest levels since 2007 on expectations that the Fed will remain on hold for an extended period of time and market participants search for yield.
• New Zealand’s trade deficit was narrower than expected, coming in at NZD 168 million vs. the prior NZD 350 million.
• The U.K.’s GDP increased .8% Q/Q, matching estimates, as increases in housing and business investments helped offset a decrease in exports.
• U.S. durable goods orders fell in October, indicating a drop in business confidence from the government shutdown.
11/28 EUR: Economic, Consumer, Industrial Confidence (Nov.)
11/28 EUR: German Unemployment/CPI Reports (Nov.)
11/29 EUR: CPI (Nov.)
11/29 CAD: GDP (Q3)
12/02 EUR: Manufacturing PMI (Nov.)
12/02 USD: Construction Spending (Oct.)
12/03 EUR: Producer Price Index (Oct.)
12/03 USD: Vehicle Sales (Nov.)
12/04 EUR: GDP (Q3)
12/04 GBP: Services PMI (Nov.)
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