US jobless claims remain at 245K – USD remains on the back foot

A small disappointment in the weekly jobless claims figures: the number of unemployment claims remained unchanged at 245K. Continued claims are slightly higher: 1.943 million. The goods trade balance also fell short of expectations, with a slightly wider-than-expected deficit of 69.7 billion. Wholesale inventories are up by 0.7%, marginally above predictions.

The US dollar ticked a bit lower in the immediate aftermath, but never went anywhere fast. The pressure continues.

Later, at 14:45, we will get the Chicago PMI, with expectations standing at a minor slide from the highs of 63.9 to 62.2 points. This will be the last US economic indicator published in 2017.

Cryptocurrencies are falling quite significantly, with one stand-out: Ripple. Here are 3 reasons for the Ripple price rally.

The US was expected to report a small slide in weekly jobless claims: 240K in the final report published in 2017 after 245K last week (before revisions). The goods trade balance was predicted to show a slightly narrower deficit of 67.7 billion after 68.3 billion last time. Wholesale inventories carried expectations for a rise of 0.4% after falling 0.5% last time.

Despite the festive holiday mood and low liquidity, foreign exchange markets are moving and the trend is clear for the dollar: down.

  • EUR/USD was moving higher, enjoying the natural flows. The world’s most popular currency pair reached 1.1940, breaking above resistance at 1.1910.
  • USD/JPY lost ground, sliding below the 113 level. Nevertheless, it remains entrenched in range. Support is at 112.20 and resistance at 113.
  • GBP/USD extended its gains and tried to tackle the 1.3450 level. The next cap is at 1.35 and the low support line is 1.33.

This seems like an end-of-year movement and perhaps an extension of profit taking that was related to the successful passage of tax reform.

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