Today’s unemployment claims were expected to be close to 376K. This morning the actual number released was 350K. In result of the positive deviation, the USD has shown itself bullish today against the CAD, NZD, EUR, AUD, and others.
Yesterday in the FOMC meeting minutes, decent remarks were made. Comments such as “economy expanding moderately” and “household spending seems to be rising” were said to be made. This could also be a contributing factor in the Dollar strength this Thursday.
The next scheduled FOMC meeting is August 21, 2012. If you’d like to watch it live: bookmark this page.
I’d like to take the opportunity to educate you on what the FOMC is. If you are a fundamentally-minded Forex trader, chances are you are well-aware of who the FOMC is and the influence their words contain.
The FOMC (Federal Open Market Committee)
The FOMC is part of the Federal Reserve. The Federal Reserve governs the three monetary policy tools of the United States of America. The three tools are: open market operations, the discount rate, and reserve requirements. The FOMC (or Federal Open Market Committee) is in charge of the “open market operations” as the name “Federal Open Market Committee” suggests.
Eight times per year the FOMC gathers for their scheduled meetings. They discuss the financial condition of the country, evaluate economic growth, examine/critique monetary policy, and more.
Currently Ben Bernanke is the Chairman of the Federal reserve.
At 8:30am EST tomorrow (Friday) this month’s PPI is scheduled to be released. PPI is the difference in the price of finished goods and services sold by manufacturers.
If we see some positive numbers, look for a bullish continuation tomorrow for the dollar.
Written By: Tony College
Winner’s Edge Trading, as seen on: