Search ForexCrunch

The number of weekly unemployment claims in the US dropped to 403K. This was a bit above expectations of  401K. Last month’s number was revised to the upside from 404K to 409K. This is another sign that the job market is still sluggish.

Even if the US will indeed avoid a recession, this still means a big depression for job seekers.

Currencies hardly move due to the small surprise and the market’s current focus on the European debt crisis.  There is a a smaller chance of seeing a drop in the unemployment rate for October due on November 4th.

EUR/USD enjoyed a boost earlier in the day when details about the EFSF powers to buy bonds in the secondary markets emerged. The ECB will call the shots about which countries receive the aid, but fresh doubts about the size of the EFSF are hurting the common currency and boosting the greenback once again.

Earlier this week, American producer prices rose more than expected, while consumer prices came in within expectations, showing that inflation is here to stay. Housing sector figures didn’t provide big surprises.

Later on we have two important figures: existing home sales and the  Philadelphia Fed Index. The latter is more important as it provides data for the current month.