The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Poor US jobless claims shocked investors
The number of Americans asking for new unemployment benefits unexpectedly jumped last week: 770,000 vs the expected 704,000. It seems that everything has been done to improve the indicators of the labor market: $1.9 trillion stimulus package was unveiled and the vaccination pace was really fast. Thus, the fact that the numbers came out worse than anticipated surprised investors.
As a rule, the poor data weakens the currency. But despite this rule, the USD surged and pressed down its peers. EUR/USD has broken through the 50-period moving average of 1.1915, clearing the way down to the recent lows of 1.1890. The move below this support will press the pair down to the low of March 10 at 1.1870. On the flip side, if it jumps above the high of March 15 at 1.1955, it may rise to the 38.2% Fibonacci level at 1.1990.
The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
Last week was full of surprises! Stock indices have shown significant growth…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).