The U.S. Labor Department said the initial jobless claims increased by 17,000 to a seasonally 283,000 in the week ending October 18 from the previous week’s revised total of 266,000. The analysts had expected jobless claims to rise by 16,000 to 282,000 last week.
The US Central Bank has reduced its monthly program of asset buying by $10 billion, staying on the way to its full October completion. The US Labor Department said earlier that the initial jobless claims in the United States fell by 36,000 to 280,000 last week, the lowest level since mid-July. The euro/dollar fell at the end of the week despite the fact that the pair had recovered after the fall to 1.2834 against this background the pair was able to get back above the resistance level of 1.2880 and rise to 1.2928. The euro fell after the news where the ECB stated that under the target long-term loans program (TLTRO) 255 applicants allocated 82.6 billion euro. The loan volumes were significantly lower than the expected 100-150 billion euro. The use of low volume loans suggests that the program will have a limited impact on the liquidity improvement in the euro area.
The US Department of Labor reported that the initial jobless claims increased by 11,000 to a 10-week high of 315,000 from the previous revised 304,000 weeks. Analysts expected the claims numbers would decline by 4,000 to 300,000 last week. Expectations that the Federal Reserve is close to increase the interest rates, contributed to the dollar growth. The study conducted by the San Francisco Federal Reserve Bank and published on Monday showed that the central bank officials predict the growth rates earlier than the market expects.
The demand for the dollar is still supported by the expectations that the Federal Reserve is on the way to raise interest rates, as the recent optimistic economic reports showed the United States recovery increase. The EUR/USD showed the active decline and then a slight correction. The moving average is directed horizontally, but may decrease further. The key resistance levels are represented by the 1.2956 and 1.2972 marks. The key support level is located at the level of 1.2920. The euro is traded near 14-month low against the dollar after the last European Central Bank policy decision continues pressure the euro. The ECB cut its benchmark interest rate to the record low of 0.05% from 0.15% surprising many market analysts who didn’t expect any changes.