U.S. Weekly Claims report show the number of people filing claims last week dropped to 323,000 down from previous report of 327,000 extending the positive sentiment for the U.S. job market and in turn supporting the U.S. dollar against the majors. The EUR/USD is currently trading around the 1.3134 or -0.14% lower ahead of the U.S. session.
The economic data teeter-totter ride continues with the teeter-totter pushing the euro higher on surprising better than expected German industrial output data eases concerns over the euro zone’s largest economy.
Between the Federal Reserve’s decision to keep the petal to the metal and European Central Bank’s decision to finally cut key interest rates to stimulate the euro zone economy traders saw an up – flat – down pattern over the past 3 trading sessions otherwise known as evening star candlestick pattern in the EUR/USD currency pair.
Renewed global economic concerns after China report disappointing HSBC Flash Manufacturing PMI results of 50.5 and Germany’s PMI results disappointed with results of 49.2 indicating contraction. Remember the 50 mark is the line in the sand that represents contraction or growth.
The week begins once again with global economic growth in front and center after official Chinese government reports showed the China’s GDP only grew by 7.7% disappointing expectations of 8% and missing even the previous reading of 7.9%.
U.S. Non-Farm Payroll disappoints with only 88k of new job creation. It’s the lowest jobs number since June and the largest miss in nearly 2 years. Analysts were expecting an increase of 200k for the month of March after a February’s 268k results.
This morning the euro including the EUR/USD was under pressure over concerns of deteriorating economic conditions in the euro zone and Cyprus and European Central Bank’s policy decision.
The EUR/USD jump during the Asian session above the 1.30 level on the news of a Cyprus bailout plan early Monday morning ahead of the European leaders’ deadline of Monday’s close of business.
The Aussie dollar is slightly weaker on the day after hitting a month high and consequentially resistance yesterday. The pair is feeling pressure from financial banking crisis in Cyprus as sentiment flows from riskier currencies to safety currencies such as the U.S. dollar.
The euro remains under pressure against U.S. dollar as well as the major currencies, albeit it’s off the lows from the European session as traders continue to focus on the euro zone crisis and the latest shoe falling “Cyprus”.