The Big Slowdown

With most major news on hold until Friday, the forex markets made some anticipatory moves today. The EUR/USD flew through the 1.3400 mark on its way to a two-year high of 1.3442. Other pairs followed suit, with the USD/CHF diving almost 100 points to 1.2125. Most of the western countries have rounded out their positions ahead of the holiday weekend, but many extreme swing trade lovers are continuing to look for opportunities in the thin market. Price action in US and European capital markets is significantly trailing off ahead of the global holidays, and the remaining diehard traders had only the US weekly jobless claims data with which to work. The Labor Department reported a rise in first-time filings for unemployment benefits by 11,000 to 321,000 through the final week of March, while rolling claims fell to a two-month low of 2.492 million. Together, these numbers added little to the standing consensus for tomorrow’s Non-farm payrolls. While a pick-up in initial claims is undesirable, the average for March was well below that of February. As we turn in for the day, the EUR/USD is holding at 1.3427 and the USD/JYP is pushing 118.67. Enjoy the weekend – see you on Monday.

David Hilgeman, XPRESSTRADE Analyst