The US data portion pointed to further economic recovery.

Data for last week show Initial jobless claims fell to 360k 350k expected. The number of continued claims fell by 126k to 3.241M. In both cases, we see the lowest levels since the pandemic hit and the end of the stagnation in numbers.

The other batch of data was about industrial production. Capacity utilisation rose to 75.4, very close to 76.3, the level saw in February 2020. Industrial production is 1.2 below prepandemic levels.

The reaction of the markets is interesting. They are not at all happy about the optimistic reports. The same applies to the response in stocks of companies that have already reported for the 2Q21. The reverse reaction in stocks is dominated. It seems there is a long waiting list for those who would like to take profits from the previous increase.

It is often the case that the selling tendency on good news turns into pressure on the markets. But now, we are drawing attention to the emphasised persistence of a dovish approach to policy.

Source FXPro