US data cold comfort post FOMC, though better than expected
This afternoon's release of US data is very much second tier, with the weekly claims figure a little better than expected at 221k vs 226k. Philly Fed was perhaps of a little more interest, giving an insight into regional output. The manufacturing index came in at a much better than expected 13.7 in Mar vs 4.6 expected, and this is up from the -4.1 recorded in Feb.
There is no response from the market however, and traders will be looking to see how the cash markets in the US perform this afternoon. Yields are falling across the board so there is evidence of bond buying which could spell a negative patch for equities this afternoon.
USD/JPY has continued to hold off the 110.25-30 area. This is pivotal support now, and a breach could spell a more significant top above 112.00 we saw in early March.
EUR/USD is also now back under 1.1400, though there seems to be little follow on momentum to carry the much lower from here, though this could change later on as US traders failed to break through the 1.1450 mark last night.
USD/CAD has been pushing higher aggressively. After holding off the mid 1.3250 lows seen earlier this week, it has been a strong pull back and we are now looking at a potential move on 1.3400 over coming sessions if not higher.