US jobless claims at 278K – within expectations

The US labor market is not deteriorating very quickly: 278K jobless claims are seen now. While this is slightly worse than 275K expected, it is back to more normal levels and last week’s 294K now seems to be a one-off. Continued claims stand at 2.152, better than 2.163 million predicted. The Philly Fed Manufacturing Index disappoints with -1.8 points.  Estimations were for a positive number: 3.2. All in all,  the data is now off the table, leaving the scene back to the Fed.

US jobless claims were expected to slide to 275K after hitting a high of 294K last week, the worst since January, a move that triggered worries.

The US dollar continued  showing strength after the hawkish Fed minutes  that widened the open door for a rate hike in June.

For a confirmation of the hawkish stance or a playing down of this move, we have two top FOMC members speaking up today: Stanley Fischer, No. 2 at the Fed, which leans to the hawkish side, and Bill Dudley, No. 3 at the Fed, which has been quite dovish. If Dudley is also open to a June hike, the dollar could extend its gains. Otherwise, we could see it slide.

Fischer speaks at 13:15 GMT and Dudley follows at 14:30.

More: EUR/USD levels to watch after the FOMC minutes.