Initial jobless claims and ISM manufacturing highlight the US economic calendar

The market appears to be coming around to the idea that the US economy is fine, or at least that it was fine before April.

The combination of upbeat commentary from Visa and the internals of yesterday’s GDP report has the market thinking that the economy is on strong footing. The recent initial jobless claims numbers bear that out but that set will be tested again today. The consensus is 224K, up a touch from 222K a week ago.

Then at 10 am ET, the focus will shift to the industrial economy with March construction spending and April ISM manufacturing. The latter is expected to slip to 48.0 from 49.0. Lately there has been a focus on the ‘prices paid’ numbers as well but with oil prices cratering, the market is seeing more room for the Fed to cut rates.

WTI crude was last down $1.21 to $57.00.

This article was written by Adam Button at www.forexlive.com.