It’s all happy happy once again: US jobless claims fell 23K to 264K, below all estimates and a new multi-year low.And so is the 4 week moving average, that fell to 283.5K. This is great news. Continuing claims stand at 2389K.
The dollar is not enjoying this. Does the market think it is too good to be true? Update: it takes some time, but the greenback is eventually moving just a bit higher against some currencies.
EUR/USD is actually ticking higher, USD/JPY is stable and other currencies aren’t getting that excited. The Canadian dollar is suffering, but that’s because of a drop in Canadian manufacturing sales by 3.3%, double the early expectations.
The biggest losers seem to be the Aussie and the kiwi, which are both down more than other currencies.
US jobless claims were expected to stand at 286K, very similar to last week’s 287K, before revisions. The 4 week moving average then fell to the lowest since 2006. Continuing claims were predicted to remain around 2.38 million.
Markets continued trading in some sort of madness, with high volatility.
EUR/USD traded under 1.2760, GBP/USD just under 1.60, USD/JPY at 105.85, USD/CAD at 1.1332 as oil prices continued falling, AUD/USD around 0.87 and NZD/USD at about 0.79.
Yesterday’s weak retail sales eventually triggered a wide USD sell off and a crash in stocks. The sell off continued in Asia and in Europe, but the dollar stabilized.
We have more interesting figures today: industrial output, the Philly Fed Index and more. Tomorrow the focus is on consumer sentiment.