Summary

The equity markets continued to push higher as a better than expected US jobless claims, added fuel to yesterday’s fire. Initial claims for jobless benefits fell a seasonally adjusted 21,000 to 454,000 for the week ended July 3, according to the Labor Department. The four-week moving average fell 1,250 to 466,000. The number of workers applying for continuing claims fell by 224,000 to 4,413,000. Analyst had expected jobless claims to fall to 461 thousand. The S&P 500 index climbed 10 points to 1064.

Tomorrow's Events

EUR	6:00	German CPI	June	.1%	.1%
GBP	8:30	UK CPI	June	.2%	-.6%
GBP	8:30	UK Trade Balance	May	3B	-3.3B
CAD	11:00	Canadian Employment	June	20K	24.7K
USD	14:00	US Wholesale Inventories	May	.4%	.4%

Trading Opportunities

GBP/USD

The UK reported a 0.7% rise in May industrial production. This compares with a consensus estimate of 0.4%. April was revised from a gain of 0.4% to a decline of 0.7%, which shows a weaker picture. The pound continues to consolidate after breaking out above trend line resistance. As long as the GBP/USD continues to close above the break out trend line, the short-term rally should remain in place. Last week, the 20-day moving average crossed above the 50-day moving average, which is technically beneficial to the currency pair.

   

Oil

Oil prices continued to rise as better than expected inventory data released by the Department of Energy boosted petroleum prices across the board. Crude Oil prices, excluding input into the SPR, declined by 5 million barrels to 358.2 million barrels. Analysts had expected declines closer to 1 million barrels. Additionally, total product supplied, (which is EIA speak for demand) increased by 19.3 million barrels or 5.1%. Gasoline demand increased by 2.1%. The 20-day moving average of Crude oil has crossed above the 50-day moving average which should be technically bullish for petroleum prices.