The dollar strengthens more after the initial jobless claims data hits the wires on a positive note. This was the first US jobs data after the Fed’s entered to the new era.
Mitsubishi UFJ strategist John Herrmann: FOMC rate hike next time is not determined; expected US inflation rate will stagnate predicament, GDP is expected to moderate growth, continued weakness in labor force growth, employment growth deceleration; expected 5-year –30-year US Treasury bonds and swaps further flattening of the yield curve.
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS
In the week ending December 12, the advance figure for seasonally adjusted initial claims was 271,000, a decrease of 11,000 from the previous week’s unrevised level of 282,000. The 4-week moving average was 270,500, a decrease of 250 from the previous week’s unrevised average of 270,750.
Complete media release:UNEMPLOYMENT INSURANCE WEEKLY CLAIMS
Manufacturing conditions in the region weakened this month, according to firms responding to the December Manufacturing Business Outlook Survey. The indicator for general activity, which was slightly positive last month, fell into negative territory.
The diffusion index for current activity returned to negative territory this month, decreasing from 1.9 to -5.9. This is the third negative reading in the past four months.
Oil strategist at RBC Michael Tran: 2016 June contract is one of the most actively traded short-term contracts, 60 and 70 US dollars / barrel call option most open positions, due to the WTI crude oil become more resilient, $ 60 / barrel would be a key resistance level over the next 12-18 months.
Nigeria international oil price list: Nigeria consecutive month down IBOE crude oil official selling price.
Venezuelan President Maduro: Fed rate hike in oil prices hurt.
Russian Energy Minister Novak: United States to end the ban on exports of crude oil supply will not be pulled. (RIA Novosti)
After the US jobs data, the dollar bulls refresh high against the majors and against the Canadian dollar rose more than 200 points, or 1.45 percent, to 1.3983.
The parallel monthly resistance seems at 1.4000 May 2005 levels which are a target of BOC above this 1.4170 and 1.4195 acting strong parallel resistance. Intraday trading resistance seems at 1.4020 levels.
Trader’s eye today’s Canada CPI and wholesale sales.
The lower oil price has been factoring in the Canadian economy push the inflation at 0.1% in September the Canadian inflation tasted the deflation as well. This year twice the inflation dips to negative levels. Economists expect the inflation remains at 0.1% in November.
Year on year basis, economist expects the CPI remains at 1.0% dips from July’s 1.3%.