With new unemployment claims on the rise, investors should watch for potential headwinds in the U.S. dollar

With new unemployment claims on the rise, investors should watch for potential headwinds in the U.S. dollar

08.03.2024

In the previous day’s U.S. currency trading, the U.S. dollar fell against the euro after the number of new U.S. unemployment insurance claims, released on the 7th, rose to 1.906 million from 1.905 million the previous week, exceeding market expectations of 1.872 million. The EUR/USD pair rose from 1.0867 to 1.0955, with prices extending to the +2σ level of the 4-hour Bollinger Bands.On the higher-timeframe daily chart, the EUR/USD RSI is at 70, indicating an overbought condition, so traders should be cautious of corrective price movements during U.S. trading hours.

Following yesterday’s ECB meeting, where the policy rate was kept unchanged at 4.50% in line with market consensus, the euro briefly fell to become the weakest currency immediately after the announcement. The EUR/GBP pair dropped from 0.8562 to 0.8523, falling to the -3σ level on the 4-hour Bollinger Bands. We need to assess whether the euro will continue to weaken against other currencies.

Today’s economic indicators include the Japan Economic Watchers Survey at 2:00 PM, Germany’s Industrial Production and Producer Price Index at 4:00 PM, and France’sFrance’s trade balance and current account balance at 16:45, Eurozone Q4 GDP at 19:00, remarks by Williams, President of the New York Fed, at 21:00, Canada’s employment report and U.S. employment report at 22:30, and Canada’s capacity utilization rate. We will closely monitor the direction of the U.S. dollar, which is facing resistance due to rising initial jobless claims.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed