Forecast: How will U.S. jobless claims data affect EUR/USD?

NEW YORK (Forex News Now) – The Department of Labor is due on Thursday to publish a report on U.S. unemployment claims, in one of the day’s major FX news events.

The data is expected to show that the number of U.S. workers filing new claims for jobless benefits fell to 460,000 last week, according to two major forex news outlets, from 472,000 during the previous week.

The department is scheduled to release the report at 12:30 P.M., GMT; as such, the data is likely to dominate European afternoon currency trading.

Given the current FX analysis, a smaller-than-expected decline in claims, or even an increase, could very well push EUR/USD down toward short-term support around the high of June 14, 1.2115.

Should the data show a greater-than-forecast drop in claims, however, the currency pair could be lifted short-term resistance around the high of May 24, 1.2563.

In any event, the decision is likely to help set the tone of the rest of the day’s FX trading news.