It was another very quiet day for the US on Wednesday in terms of economic data. The most significant update was the US Mortgage Applications figures, considered the leading indicator of the US Housing Market. A large move from -27.6% in September to 11.8% represents a strong positive swing in the health of the housing market – although this remains relatively bearish. Alongside this data the DYX (US Dollar Index) was shown to be steadily increasing, as traders move back into the safe-haven currency following the release of a relatively weak third quarter Gross Domestic Product (GDP) from China.
Today, the focus is on the Chicago Fed National Activity Index (a gauge of overall economic activity) and the Initial Jobless Claims (measuring strength of the labour market). The latter is expected to come in at 265k,up from 255k last month, which indicates weakness in the market and may be seen as a negative for the US dollar.