Unemployment Claims Up Next
Today’s US data will take on greater importance in the wake of the recent slew of Fed comments we’ve heard over the last week. With a notable hawkish shift in sentiment, USD has been on the front foot as traders continue to anticipate forthcoming tapering. Chairman Powell this week noted that although inflation has become much more of an issue recently, employment is still far from maximal levels (created an obstacle to tightening). With this in mind, today’s weekly unemployment claims will be closely watched. If the data beats expectations, expect the USD rally to continue. If we see a miss (mostly a significant one), USD is likely to be blunted into the end of the week.
Where to Trade US Unemployment Claims?
EURUSD
EURUSD has been under heavy selling pressure this week with price breaking down below the 1.1703 and 1.1612 levels. With both MACD and RSI giving bearish signals here, there is room for a continuation of the bearish channel on any USD upside today, with the 1.1495 level (and bear channel low) the next target for bears.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.