How will initial U.S. jobless claims impact EUR/USD?

ForexNewsNow | Published on October 28, 2010 at 6:48 am

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Indicator analysis - workers queingNEW YORK (Forex News Now) – The Department of Labor is due on Thursday to publish key data on U.S. initial jobless claims, in one of the day’s major realtime forex news events.

The report is expected to show that the number of U.S. workers filing new claims for unemployment benefits climbed to 458,000 last week, according to two major online FX trading news outlets, up from 452,000 during the previous week.

The department is scheduled to release the report at 12:30 P.M., GMT; as such, the data is likely to dominate European afternoon currency market trading.

According to EUR USD analysis, a larger-than-expected rise in claims, could lift EUR/USD toward short-term resistance around Friday’s high, 1.4158.

But should the data show a smaller-than-forecast increase, or even a drop, the currency pair could be pushed toward short-term support around Wednesday’s low, 1.3698.

Of course, the latter scenario could actually whet FX traders’ risk appetites, which would likely benefit the euro against the dollar.

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