More Good News from the US

The number of jobless claims in the US is moving lower, dropping to 390K. This is below 400K that was expected. Last week’s figure was revised upwards from 397K to 400K. Unemployment claims are slowly moving lower, and support another drop in the unemployment rate. This follows a good Non-Farm Payrolls report.

Also the US trade balance deficit came out below expectations, hitting 43.1 billion, below 46.1 billion that was expected. Good news for the US.

US Import prices fell by 0.6%. This is a significant surprise, as the markets were expecting a rise of 0.1%. The drop in import prices will likely make goods cheaper and can encourage spending.

These good news add to the “risk on” atmosphere, although it’s important to note that the markets are still focused on Italy.

EUR/USD is unchanged at around 1.3630, under the 1.3650 line, which switched from support to resistance after yesterday’s crash. Support for the pair is at 1.3550. For more, see the euro dollar forecast.

Also Canada’s trade balance came out better than expected, with a nice surplus of 1.2 billion. USD/CAD  continues dropping and is now under 1.02.

It met resistance at 1.0263 when Rome “burnt” and is now falling down. See the Canadian dollar forecast for more.

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.