Trading the News: U.K. Jobless Claims Change
What’s Expected:
Time of release: 05/18/2011 8:30 GMT, 4:30 EST
Primary Pair Impact:GBPUSD
Expected: 0.0K
Previous: 0.7K
DailyFX Forecast: -1.0K to 2.0K
Why Is This Event Important:
U.K. jobless claims are expected to hold flat in April after unexpectedly rising 0.7K in the previous month, and a mild improvement in the labor market could spark a bullish reaction in the British Pound as the central bank adopts a hawkish outlook for monetary policy. H
By: Hillel Fuld
The USD was on the defensive close to a a 3-½ month low versus a variety of currencies after poor U.S. jobless claims figures raised worries that Friday’s payroll data could paint a sad picture of the U.S. economic recovery.
A negative reading could fuel rumors that the Federal Reserve may consider additional easing steps as early as next week, which could increase pressure on the greenback particularly against the Japanese coin, given the pair’s recent strong correlation with U.S. Treasury yields.
“Unless employment improves, housing demand won’t improve and consumption won’t grow.