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EUR/USD Drops, US Jobless Claims Climbs

December 29, 2011 by

EUR/USD was falling today as Italy sold less debt than the maximum target at the auction and yield rose. The last US reports this year were good with the exception of unemployment claims that climbed last week. Currently, EUR/USD goes higher, erasing much of its losses.

Initial jobless claims rose from 366k to 381k in the week ending December 24, while forecasters promised an increase to just 372k. (Event A on the chart.)

Chicago PMI was at 62.5 in December (seasonally adjusted), little changed from the November reading of 62.6. A decrease to 60.4 was predicted by analysts. (Event B on the chart.)

Pending home sales advanced 7.3% in November, somewhat slower than in October (10.4%), but significantly more than was expected (1.7%). (Event C on the chart.)

Crude oil inventories increased by 3.9 million barrels, while total motor gasoline inventories decreased by 0.7 million barrels last week. (Event D on the chart.)

EURUSD for 2011-12-29

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

2 Responses to “EUR/USD Drops, US Jobless Claims Climbs”

  1. John

    “At first, second and third glance, not great news!” Why? Because historically — is there no one who actually looks at past trends? — unemployment claims always fall just prior to Christmas, year after year after year — this year is no different. Likewise consumer confidence/sentiment is nearly always higher in December and January (with exception of December 1974) so unless the numbers are adjusted for seasonal variation these numbers really don’t mean much

    Reply

    admin Reply:

    Of course, they are seasonally adjusted.

    Reply

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