The number of weekly unemployment claims dropped to 382. A slide to 374K from last week’s 385K (382K initially reported) was predicted.
EUR/USD was capped by the 1.290 line prior to the release. USD/JPY was around 78.15 and now continues falling.
The rise in both this week’s figures and last week’s, help justify action seen from the central bank, seen in QE3 last week. Nevertheless, it is hard to make the connection between more buys of low yielding bonds and unemployment.
Yesterday, relatively encouraging figures were reported from the housing sector: existing home sales reached the highest levels in almost one year, and also building permits and housing starts were OK.
Later on, the forward looking Philly Fed Manufacturing Index is expected to improve, yet remain in negative ground. See how to trade this event with USD/JPY.
Update: The Philly Fed Index came out better than expected, but it is still in negative ground.
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