✨ UPDATE: EURUSD ✨ GDP/UNEMPLOYMENT CLAIMS (2H) ✨
IMPORTANT FACTORS:
—The Department of Labor will release the weekly Initial Unemployment Claims report on Thursday, May 25, 2023, at 05:30 PT.
—The report measures the number of individuals who filed for unemployment insurance for the first time during the past week.
—The market impact of the report can vary from week to week. Still, it is typically more significant when traders must diagnose recent developments or when the reading is at extremes.
—Although it is generally viewed as a lagging indicator, traders care about the number of unemployed people because it is an important signal of overall economic health and because consumer spending is highly correlated with labor-market conditions.
—Unemployment is also a significant consideration for those steering the country's monetary policy.
FUNDAMENTAL ANALYSIS:
The USD could be affected by the Unemployment Claims report in several ways. First, if the number of claims is higher than expected, it could be seen as a sign that the economy is slowing down, leading to a sell-off in the USD. Conversely, if the number of claims is lower than expected, it could be a sign that the economy is strengthening, leading to a rally in the USD. It is important to note that the Unemployment Claims report is just one data point traders will consider when making decisions about the USD.
OTHER FACTORS:
Other factors that could also affect the USD include the release of other economic data, such as GDP growth and inflation, as well as geopolitical events.
—The Department of Labor will release the weekly Initial Unemployment Claims report on Thursday, May 25, 2023, at 05:30 PT.
—The report measures the number of individuals who filed for unemployment insurance for the first time during the past week.
—The market impact of the report can vary from week to week. Still, it is typically more significant when traders must diagnose recent developments or when the reading is at extremes.
—Although it is generally viewed as a lagging indicator, traders care about the number of unemployed people because it is an important signal of overall economic health and because consumer spending is highly correlated with labor-market conditions.
—Unemployment is also a significant consideration for those steering the country's monetary policy.
FUNDAMENTAL ANALYSIS:
The USD could be affected by the Unemployment Claims report in several ways. First, if the number of claims is higher than expected, it could be seen as a sign that the economy is slowing down, leading to a sell-off in the USD. Conversely, if the number of claims is lower than expected, it could be a sign that the economy is strengthening, leading to a rally in the USD. It is important to note that the Unemployment Claims report is just one data point traders will consider when making decisions about the USD.
OTHER FACTORS:
Other factors that could also affect the USD include the release of other economic data, such as GDP growth and inflation, as well as geopolitical events.
Professor C. E. Ward
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