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US Continuing Claims dropped for the first time since the coronavirus pandemic, which could down the US dollar, according to FXStreet’s analyst Yohay Elam.

Key quotes

“The number of ongoing unemployment applications dropped to around 21 million – a devastation figure – but still, the first slide since the coronavirus pandemic.” 

“The better-than projected continuing claims figure may serve as a tie-breaker in favor of higher stocks. In turn, that may weigh on the safe-haven US dollar and to some extent also push the yen lower. Commodity currencies and the euro may be the beneficiaries.”

“The potential downside, later down the line, is if the pendulum swings toward pricing less monetary stimulus by the Federal Reserve, and that could support the greenback. However, the Fed has committed to almost unlimited support in any case, so the pricing of central bank action.”