US government faces possible prolonged partial shutdown
US jobless claims fell to a 45-year low as its government faces a possible prolonged partial shutdown if an impasse is not approved in Senate Congress for a new funding bill. China’s growth rate remained stable. UK retail price index on overall consumers’ sentiment rose to a six-year high.
US jobless claims dropped to 220,000 in the week ended January 13, a 45-year low record. Building permits stayed strong in January at 1.3 million while housing starts fell to 1.19 million, lower than in December.
US Government faces a potential prolonged partial shutdown if its lawmakers fail to pass a bill for funding the civil services through until February 16. House has approved a funding bill but it has not passed the Senate’s approval, before the bill could be presented to the president in order for it to be signed into the law.
China grew 6.8 per cent in final quarter of 2017. Industrial production including utilities and mines rose 6.2 per cent in January on a yearly basis. Retail sales expanded 9.4 per cent from a year ago and fell below 10 per cent for the first time in 10 months.
The eurozone’s consumer prices rose 1.4 per cent on a yearly basis in December. Core prices, excluding food and energies, grew 0.9 per cent from a year ago. Current surplus in the 19nations region rose 32.5 billion euros in November, higher than the previous month.
British consumer prices rose three per cent in December from a year ago. Retail price index rose 4.1 per cent on an annual basis at a six-year high. Retail sales fell to a nine-month low at minus 1.5 per cent after the data was revised down to one gain in November. Technical forecast US dollar/Japanese yen has been trading sideways for many days while waiting for Bank of Japan’s policy rate announcement on Monday. We reckoned the trend would be supported at 110 and it would make it possibly a rebound to 112.50 area. However, if it unexpectedly breaks beyond this range, be guarded with risk control in case your position sits on the adverse direction.
Euro/US dollar might be resisted temporarily as the trend has rattled smaller range around the 1.225 area. This week, the support could be at 1.2030 level in case of a drawdown. Beyond 1.23, a new buying interest could emerge. Aim for 1.2550 target in case of unforeseen circumstances.
British pound/US dollar encountered resistance at 1.395 to 1.40 region last week. Technically, market trend is exhausted and might drawdown this week if the trend could not go above 1.40. Downside target may reach 1.3650 region if the dollar rebounds for correction.
Disclaimer: This article is written for general information only. No liability by the writer, publisher or any third party involved in the distribution of this work. Dar Wong is a registered fund manager in Singapore with 29 years of global trading experiences. You may reach him at dar@ pwforex.com.