A Flood of Economic Headlines Today

On July 31, 2013 by TradingDesk

A flood of economic headlines is hitting the wire today, and so far markets seem to be holding their breath, waiting for the FOMC announcement this afternoon. US GDP in the 2nd quarter beat the consensus estimate, showing growth of 1.7%, but Q1 growth was revised lower. ADP showed private jobs growth of 200,000, adding to the evidence that the US economy continues its slow growth recovery, and makes it less likely that the FED will make a policy shift until more substantial gains are seen.

Energy prices continue to test $3, with both RBOB and ULSD futures trading down to $2.98 only to bounce above the key pivot point again. Charts have shifted from Bullish to Neutral, with a few indicators now beginning to favor a move lower. Today’s DOE report is expected to show gains for refined products, which should give us another chance to break down, although if prior months are any indication, the sustained move won’t happen until after the FED announcement.

After TS Dorian broke up over the weekend, the Atlantic is quiet and no storms are forecast to form this week.

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