US Jobless Claims stand at 377. K Early expectations stood on 381K, similar to last week’s initial read of 383K. Last week’s number was revised to the upside, to 389K.
The Memorial Day holiday had an impact on the figures, but probably a minimal one. The four week moving average ticked up to 378K. EUR/USD is ticking higher, but markets await Bernanke.
All in all, the numbers are not so good. Weekly claims stabilized in a lower range of between 350K to 365K before April. After leaping higher, they still haven’t fallen back to previous levels.
Markets are still optimistic about some global coordination, and hints of QE3 from Bernanke later on. Worsening US conditions could push the Federal Reserve to “do something” on June 20th. However, buying more bonds wouldn’t do much for long term lending – US yields are already at rock bottom levels.
The Fed would need SYRIZA to win in the Greek elections for action – the current US situation isn’t good, but doesn’t justify more action.
Critical resistance appears at 1.2623 for the euro. See more in the Euro USD forecast.
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