• The Dollar extends its reversal as US Jobless Claims increase.
• These figures confirm the view that the US labor market is deteriorating.
• EUR/USD remains bearish while below 1.0850.
   

The Euro bounced up ahead of Thursday’s session opening times with the US Dollar extending its reversal. US Jobless claims have confirmed that the labor market is losing steam.

Claims for unemployment insurance in the US increased to 220,000 in the last week of November, up from 218,000 claims in the previous week.

This confirms the trend suggested by the US Jolts openings and the ADP report earlier this week and backs the narrative of softer economic growth and weaker employment consistent with the theory that the Federal Reserve might start to roll back its tightening cycle in the first quarter of 2024.

From a wider perspective, the picture remains little changed, with the near-term bearish bias intact while below 1.0800 and 1.0860. On the downside, 1.0750 is likely to provide support ahead of 1.0660.

Technical levels to watch