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Weekly unemployment claims in the US stand at 386K. Early expectations stood on 385K. The initial report for last week stood on 387K. Update: Last week’s number was revised to upside to 392K. This weekly barometer is stabilizing at higher ground – worse than earlier in the year. The 4 week moving average stands at 386,750.

A level of under 400K is considered sufficient to keep unemployment from rising. This level is getting closer. EUR/USD traded around 1.2420 before the release. USD/JPY around 79.40. Both pairs are rising after the release.

The final GDP release for Q1 confirmed the previous read of an annual 1.9%. Q2 is probably seeing even slower growth.

Housing remains the bright spot in the US economy: pending and new home sales, as well as building permits, have surprised to the upside recently, while other indicators fell short of expectations.

EUR/USD is reacting strongly to every headline from the EU Summit as indicators play second fiddle. The EU Summit is expected to discuss steps to tackle the debt crisis as well as a long term vision for a fiscal and banking union.

As previewed here, traders can expect a disappointment – previous summits have disappointed, and there’s still room for falls.

USD/JPY reacts to US figures in a better manner.