US Initial Jobless Claims Preview: Dollar needs a strong report to recoup its footing

Initial claims are predicted to be unchanged at 1.3 million whereas continuing claims are expected to drop to 17.067 million from 17.338 million. Meanwhile, the dollar fades on US economic concerns and European stimulus, FXStreet’s analyst Joseph Trevisani reports.

Key quotes

“Initial Jobless Claims are expected to be 1.3 million in the July 17 week, unchanged from the prior week and little different than 1.31 million in the first seven days of the  month. Continuing Claims are forecast to edge lower to 17.067 million in the July 10 week from 17.338 million.”

“Equity markets have largely ignored the rising Covid incidence in Southern and Western states with the logic that fatalities remain low and the vast majority of facilities in the affected areas are operating within normal public health parameters, preferring to attend to the generally good second quarter earnings reports and further government economic support forthcoming in the EU and the United States.”

“After several months of improvement the recent hesitation in initial claims underlines the uncertain state of the US economy.  With vast amounts of stimulus and economic support already deployed in the US the dollar needs the support of a positive result from that effort to regain its footing.”