- Brian Jones, senior U.S. economist at Societe General
As it was expected, the EUR/USD pair moved lower on Thursday following upbeat fundamentals from the U.S. The pair hit 1.3648 and was heading towards 1.36-mark, as inflation in the United States quickened in April, while jobless claims hit the lowest level in seven years.
The costs of living in the world's largest economy remained almost unchanged in April, while overall Consumer Price Index climbed to 2.0% on an annual basis, accelerating from 1.5% a month earlier. At the same time, core measure moved higher to 1.8% from 1.7% in March. The largest contribution was made by the indexes for gasoline, food and shelter prices. The core measure is closely watched by the Fed, therefore, traders pay more attention to this indicator.
Regarding the labour market, the number of initial jobless claims fell by 24,000 to 297,000 in the week ended May 10. Analysts claimed for a 320,000 figure. The economy is shrugging of the harsh winter, with fewer firings, setting the stage for continued growth in employment and wages. While everything speaks in favour of further improvement in the labour market, companies are proceeding with caution, as they are looking for a pickup in household spending, which accounts for around 70% of the overall economic activity.
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