The US dollar continues to recover from heavy losses it suffered on late Wednesday’s comments from President Trump, who said that the dollar is too strong and that he prefers lower interest rates.
The greenback was boosted by US weekly jobless claims that remained unchanged at 234K last week, holding near fresh 44-year low at 227K, posted in February. Forecast for the past week was 242K.
The Euro fell back near 1.0600 handle vs the dollar, from daily high at 1.0676, retracing 76.4% of late Wed / early Thu rally and shifting near-term focus lower on fresh weakness that returned back below some important supports.
Cable dipped near 1.2500 support from session high at 1.2572 on fresh dollar’s acceleration, but so far remains firm and holding above pivotal supports at 1.2570 zone.
USDJPY recovered from low of the day at 108.70, posted after steep two-day fall, inspired by safe haven yen buying and weaker dollar on Trump’s comments. The pair maintains strong bearish bias as current bounce is staying well below strong resistance at 110.00 (former base, reinforced by falling daily Tenkan-sen). Only close above the latter would sideline persisting bearish threats and signal stronger recovery.