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The EUR/USD pair declined to around 1.1440 on Thursday as the US Dollar gained traction following stronger-than-expected US jobless claims data. The Labor Department reported that initial jobless claims fell to 210,000 in the week ending March 18, below the forecasted 220,000. This suggests a resilient labor market, bolstering the USD and pressuring the Euro. The data reinforced expectations of sustained Federal Reserve policy tightness, which supports the Dollar's appeal.
The move impacts forex traders, particularly those with exposure to EUR/USD and USD cross-currencies. A stronger USD typically weakens non-US assets, affecting equity markets and commodities priced in Dollars. Traders are now assessing whether the USD's strength will persist amid ongoing inflation concerns and potential rate hikes.
Looking ahead, investors should monitor the upcoming US Non-Farm Payrolls report for March and Fed officials' comments on inflation. The Euro's performance will also depend on the European Central Bank's policy trajectory. Key technical levels for EUR/USD include support at 1.1400 and resistance at 1.1550, which could dictate short-term volatility.
