Jobless claims and consumer prices to support the U.S. dollar
Predictions come true or better
The today at 08:30 h (GMT -5) published data to the initial and continuing jobless claims, as well as the values on the rise in consumer prices have significantly supported the USD. For initial jobless claims forecasts saw a value of 335K. This was significantly lower than with 320K, and thus less about 15K applications. It looks better with the continuing requests. Here was a decline in applications around 23K to 3,000K expected. But the actual decline now shows a total value of 2,969K and thus 54,000 recipients of unemployment assistance who have found a new job.
For the consumption price inflation, the forecasts showed a precision landing. In the monthly value of these showed an increase of 0.2% and 2.0% in annual worth what the forecasts already pretended exactly. It also looks at the indices for the consumer prices, showing monthly 0.2% and 1.7% annually.
USD gains clearly
The USD rose significantly after the release of the figures. The pair EUR/USD, which had already reached a high of 1.3310 today after opening at 1.3256 stands currently at 1.3239, which represents a decrease of 0.12%. Even compared to its other counterparts, the USD could increase markedly. The pair USD/JPY currently recorded an increase of 0.29% at a price of 98.40.
Fed more difficult to assess
This development makes an assessment of the future course of the Fed, of course not simple. While the chairman of the St. Louis Fed yesterday warned not to get too to support the future course of Fed forecasts, as these have been refuted in the past too often, what put the USD under pressure, the forecasts today showed more as applicable. If you take the events of recent weeks and recent statements from the board of the Fed together, there is still no clear picture how high the probability is to be classified, which could begin tapering of the bond purchases by the Fed in September. While still signs of a recovery in the economy increases the value of the USD, it may look different again in the next week, when less messages brings the focus to official or unofficial statements from the Fed, which will be listened carefully. In trading forex, it is probably safest to USD near term to act under observation of the daily numbers and news.
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