The United States (U.S.) Bureau of Labor Statistics today reported that the Producer Price Index (PPI) for finished goods increased a seasonally adjusted 0.1% in the month of January. PPI measures the average change of price producers received for sold items. The price index at the intermediate level lowered 0.4% and the crude level rose 1.5%. For twelve months ending January 2012, finished good prices appreciated 4.1%. The year over year comparisons exhibit this as the lowest 12 month increase since the 12 months through January 2011.
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In other U.S. news, The Department of Labor reported seasonally adjusted initial unemployment claims for the week ending February 11 came in at 348,000, 13,000 less from the previous week. The four week moving average ending February 11 lowered by 1,750 from the previous week’s four week moving average. Insured unemployment numbers for the week ending February 4 came in at 3,492,500 or 2.7%. The count was 0.1% less than the previous week’s 3,526,000 amount. Additionally, the four week moving average came in at 3,492,500, less 8,250 from the previous four week moving average (3,500,750).
The U.S. Department of Commerce reported the number of building permits in January increased 0.7% from the previous month to a seasonally adjusted 676,000 annual rate. Additionally, the annual rate came in 19.0% greater than January 2011 amount at 568,000. New housing starts increased by a seasonally adjusted 1.5% to an annualized rate of 699,000. The result was better than economists’ projections of 675,000. Furthermore, multi-family new home starts increased by 14.4% to an annualized rate of 175,000 alongside single-family home-starts lowering by 1.0% to an annualized 508,000 rate.
The mood turned positive in the markets today as the U.S. jobless claims almost came close to a four year low. This helped markets recover some of their losses this week and push the Greek crisis to the back burner, at least for today. The EURUSD bounced off support at 1.3000 and traded above 1.3100 by midafternoon in the U.S. session. The test for EURUSD remains at 1.3200
Eugene Ross, Analyst
Admiral Markets
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