US jobless claims dropped to 358K, within expectations. They were expected to drop to 357K from the big leap to 373K seen last week (revised down from 374K). This is still a high level in comparison to the previous range. The leap came after several weeks of excellent low numbers – numbers that were partly to blame for technical issues in California. Continued claims stand at 2.86 million, still below 3 million.
EUR/USD was trading at a new 8 month high at around 1.3660. GBP/USD traded above 1.61 and USD/JPY fell below 98 on the clear USD weakness. Currencies aren’t reacting strongly to the expected results.
This is the first indicator released after the US government reopened for business. The debacle left the US and the USD bruised and battered.
Next week we’ll get the delayed data, including the Non-Farm Payrolls for September. However, QE tapering seems far far away.
More: USD entering a world of pain
