US unemployment on the rise
Trading sentiment on the markets continues to be dominated by speculation about future Fed monetary policy. The dovish interpretation of Wednesday’s FOMC minutes by international investors sparked a considerable shake-out of US dollar positions and yesterday’s US news flow did little to turn that around.
The latest figures show that the number of people claiming unemployment benefit rose to 360k in the first week of July. This was from a revised 344k in the previous week and marks the highest level in two months. The employment figures often see-saw in July as temporary closure of auto-plants and the July 4 bank holiday can often skew the data. Nevertheless, this points to a potentially worrying sign for the US economy and will increase the focus on future jobs releases.
Trading remains choppy with EUR/USD ranging from $1.32 to $1.2960. GBP/USD has managed to consolidate above the $1.51 level while GBP/EUR was trading just below €1.16 early this morning.