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EUR/USD Drops After US Jobless Claims

April 16, 2020 by

EUR/USD fell today after the release of US initial jobless claims. While the indicator remained at extremely high levels, the number of claims fell compared with the previous week and was better than expectations. Other US reports were not particularly good.

Initial jobless claims were at 5,245k last week, seasonally adjusted, down from the previous week’s revised level of 6,615k (6,606k before the revision). Analysts had predicted a bigger value of 5,350k. (Event A on the chart.)

Both housing starts and building permits fell in March. Housing starts were at a seasonally adjusted annual rate of 1.22 million, down from the revised February estimate of 1.56 million (1.60 million before the revision). Building permits were at a seasonally adjusted annual rate of 1.35 million, down from 1.45 million in the previous month. Analysts had envisioned a reading of about 1.30 million for both indicators. (Event A on the chart.)

Philadelphia Fed manufacturing index collapsed from -12.7 in March to -56.6 in April. Market participants were hoping for a much better result in the neighborhood of -30.0. (Event A on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

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