US Dollar Remains in Control Post Jobless Claims

Key Highlights

  • US Dollar remains in control as the market sentiment is still in favor of buyers.
  • US Initial Jobless Claims released by the US Department of Labor came in at 297K, whereas the market is expecting it to stay around 275K.
  • US Continuing jobless claims increased to 2.234M, whereas the expectation was of 2.248M.
  • Canadian Housing Starts released by the Canadian Mortgage and Housing Corporation came in at 202.81K, whereas the expectation was of 190.00K.

USDCHF Technical Analysis

The US Dollar traded higher against the Swiss Franc during the past couple of days. There is a contracting triangle pattern formed on the 4-hours chart, which might clear the way for more upsides in the near term.

USDCHF

There are many signs suggesting more gains moving ahead may be towards the 0.9550 mark.

US Initial Jobless Claims

Earlier during the NY session, the Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance was released by the US Department of Labor. The forecast was lined up for a decrease from 281K to 275K in the week ending June 4, as per the advance figure for seasonally adjusted. However, the outcome was below the market expectation, as the US Initial Jobless Claims came in at 297K. The report stated that the 4-week moving average is now 279,500 level, which is 15000 more than compared to the previous week’s revised average of 282,000.

The US Continuing jobless claims was also on the lower side, as it increased to 2.234M, compared with the market forecast of 2.248M. Overall, the outcome was on the lower side, but the US dollar was not affected much after the release.

Canadian Housing Starts

There was a major release in Canada, as the housing starts report, which captures how many new single-family homes or buildings were constructed was released by the Canadian Mortgage and Housing Corporation. The forecast was lined up for a reading of 190.00K in June 2015, compared to the same month a year ago. However, the outcome was above the forecast, as the Canadian housing starts came in at 202.81K in June 2015.



Aayush Jindal

Aayush is a Senior Forex, Cryptocurrencies and Financial Market Strategist with a background in IT and financial markets. He specialises in market strategies and technical analysis, and has spent over a decade as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets.

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