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US jobless claims plunge to 264K – the lowest since

It’s all happy happy once again: US jobless claims fell 23K to 264K, below all estimates and a new multi-year low.And so is the 4 week moving average, that fell to 283.5K.  This is great news. Continuing claims stand at  2389K.

The dollar is not enjoying this. Does the market think it is too good to be true? Update: it takes some time, but the greenback is eventually moving just a bit higher against some currencies.

EUR/USD is actually ticking higher, USD/JPY is stable and other currencies aren’t getting that excited. The Canadian dollar is suffering, but that’s because of a drop in Canadian manufacturing sales by 3.3%, double the early expectations.

The biggest losers seem to be the Aussie and the kiwi, which are both down more than other currencies.

US jobless claims were expected to stand at 286K, very similar to last week’s 287K, before revisions. The 4 week moving average then fell to the lowest since 2006. Continuing claims were predicted to remain around 2.38 million.

Markets continued trading in some sort of madness, with high volatility.

EUR/USD traded  under 1.2760, GBP/USD  just under 1.60, USD/JPY at 105.85, USD/CAD at 1.1332 as oil prices continued  falling, AUD/USD  around 0.87 and NZD/USD at about 0.79.

Yesterday’s weak retail sales eventually triggered a wide USD sell off and a crash in stocks. The sell off continued in Asia and in Europe, but the dollar  stabilized.

We have more interesting figures today: industrial output, the Philly Fed Index and more. Tomorrow the focus is on consumer sentiment.

See how to trade the consumer sentiment with USD/JPY.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.