OUCH!

The US Dollar fell to new lows yet again today, with a strong technical rally pushing the EUR/USD straight through resistance to a new top of 1.3508 in fast-moving trading. Even though many of the majors were up against significant levels of Dollar support, there was a lack of the fundamental data that typically instigates big moves and forces a breakout. This morning saw the simultaneous release of two news items, with the Import Price Index and Initial Jobless Claims seeming to offset each other with their big changes. However, a closer look revealed the mixed sentiment actually came from less-than-impressive results. First-time claims for unemployment benefits unexpectedly jumped by 19,000 filings to 342,000. While this was the highest level in eight weeks, it doesn’t foreshadow a sharp drop in the April Non-Farm Payroll report. Friday’s PPI reports should provide some clue as to market direction if predictions are true that another strong rise in non-core prices will occur. In the majors, the EUR/USD is holding at a rather high 1.3482, the AUD/USD stands at .8284, and the USD/JPY is steady at 119.14.