Weekly US unemployment claims rose to 418K, worse than a small rise to 409K that was expected. USD/JPY which dropped prior to the release, extends its falls. Other currencies also gain against the dollar.
Last week, the unemployment claims surprised with a nice drop to 405K, the lowest level seen for quite some time, but still above the round number of 400K, unable to return to the previous lower range beneath. This was now revised to 408K. This doesn’t help either.
All in all, the US job market isn’t moving too much. The US economy is still stuck, and it cannot only be blamed on higher oil prices and distorted supply chains caused by the Japanese earthquake.
Regarding EUR/USD, this publication is quite irrelevant. The focus is on the EU summit taking place in Brussels. A solution for the Greek crisis is necessary to stop the contagion.
The crisis has reached a critical moment. Reports about an agreement for a selective default in Greece have sent the euro lower. Hopes that such a selective default will be avoided later sent the pair higher.
Later in the US, Ben Bernanke will testify, and the highly regarded Philly Fed Manufacturing Index will be released. See how to trade this event with USD/JPY.
