US growth was revised to the downside in Q1: from 2.2% initially reported to 1.9%. A final release is still due. Market consensus stood on a a revision to 1.9%.Â
At the same time, weekly jobless claims were reported and they hit 383K. Expectations were for 369K. USD/JPY extends its falls and now trades at 78.65. EUR/USD is ticking up, but not going too far – still around 1.24.
The first print for last week’s claims stood on 370K. Very similar levels were seen during May. This was revised to 373K.
The GDP Price Index was revised to the upside, from 1.5% to 1.7%. This is a minor upside surprise for the dollar.
Earlier, ADP reported a gain of 133K jobs in the private sector, a bit under expectations. Also last month’s rise was revised to the downside. This does not necessarily predict the Non-Farm Payrolls published tomorrow, but it contributes to lower expectations. Challenger Job Cuts leaped by 66.7% – another cause for worry.
See how to trade the Non-Farm Payrolls with EUR/USD.
There is still one more US publication of significance: the Chicago PMI. Yet events in Europe will probably dominate the headlines once again, after the release of these important US figures.
It’s important to remember the date: the last day of the month. Flows at the end of the month may cause some distortions.
For more on the euro, see the Euro USD forecast.
