EURUSD:
The US Department of Labor (DOL) reported on Thursday that the number of Americans filing new claims for unemployment benefits fell to 231,000 for the week ending September 13. The latest data was lower than the initial estimate of 240,000 and lower than the previous week’s figure of 264,000 (revised from 263,000). Meanwhile, the number of people continuing to claim unemployment benefits fell by 7,000 to 1.920 million for the week ending September 6.
The US dollar remains strong after the Federal Reserve (Fed) announced an expected rate cut on Wednesday but did not indicate that it would rush to lower borrowing costs in the coming months.
The decline in the EUR/USD pair may be limited as the euro (EUR) could be supported by growing expectations that the European Central Bank (ECB) will end its cycle of rate cuts after the release of the latest inflation data.
ECB Vice President Luis de Guindos said the central bank should take a “very cautious” approach given the high uncertainty. Guindos added that the current rate is adequate given inflation trends and monetary policy transmission.
Trade recommendation: SELL 1.1735, SL 1.1765, TP 1.1685
Origin: FreshForex
