The session on Thursday could be rather quite initially, but ultimately we believe that the European session is will we will be waiting for. The Europeans will be releasing several different numbers that could move the market, such as the Euro zone Grows Domestic Product numbers. If they are weak, the Euro could sell off against the US dollar again. If we break down below the 1.33 level, things could be rather ugly for the EUR/USD pair. In fact, that could be the catalyst to push the Euro down to the 1.30 handle.
Looking at the US Continuing Claims number and the US Initial Jobless Claims number will be the next order of business. Because of this, we should see the US stock indices move rather drastically based upon unexpected announcements. The better result would be a less than anticipated 250,000 Initial Jobless Claims number, which could send the marketplace in the S&P 500 and NASDAQ higher. After all, we only look like the ready to go higher, but the S&P 500 faces a little bit of resistance at the 1950 level, so we need to get above there in order to start buying.
Natural gas markets will get the inventory numbers out of the United States as well, and that of course should send the natural gas markets in one direction or the other. Quite frankly though, the massive selloff that we sold during the course of the day on Wednesday leads us to believe that the natural gas markets will more than likely continue selling. Any bouncer this point in time would be a selling opportunity as far as we can tell, as we recognize the four dollars level to be a significant barrier the goes all the way to the $4.10 handle.
It should also be noted that the British pound has been broken for the time being, and rallies should be selling opportunities. Ultimately, the GBP/USD pair should be heading towards the 1.65 level given a few days.