Euro Heads Lower in Forex Trading

The euro is heading lower in forex trading on the currency market today. After seeing a rally yesterday, the euro is pulling back as the U.S. dollar takes the upper hand.

Part of the reason is likely due to some profit taking. Another issue is the fact that equity markets are falling right now, and the euro generally derives support from strong stocks. And, of course, the pace of economic recovery remains in doubt.

FX Street offers a look at the technical side of the euro in forex trading:

Ian Coleman, Analyst at Turtle Futures, comments: “We have hit some resistance at 1.4920 (was resistance now support). I am expecting a break here then looking to take off half the trade at 1.4893 (which is the daily trend line). If we break there it should be impulsively and take us down to 1.4696, my third wave target, pretty quickly.”

U.S. Jobless Claims Remain Steady

It appears that, for now, the employment picture may be leveling off and stabilizing. U.S. jobless claims are holding steady near 10-month lows, according to a report from the U.S. government. There was essential no change in the number of initial jobless claims filed, and it appears that continuing claims fell.

However, it is important to recognize the caveats associated with continuing claims data, as CNN Money explains:

Continuing claims reflect people filing each week after their initial claim until the end of their standard benefits, which usually last 26 weeks. The figures do not include those who have moved to state or federal extensions, nor people who have exhausted their benefits.

Even so, the fact that initial claims are holding steady is good news. It will be even better news if the labor market manages to show some solid improvement. One of the issues stymieing economic recovery and threatening a double-dip recession is the fact that jobs have been so scarce, and that lay-offs continue.