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EUR/USD dips briefly below 1.1400 after US jobless claims

FXStreet (Córdoba) - EUR/USD retreated and briefly dipped below the 1.1400 level as the dollar was mildly boosted by better-than-expected US initial jobless claims data.

The number of people applying for unemployment benefits in US decreased by 1,000 to 264,000 in the week ending May 8, staying at a 15-year low, and beating expectations of 275,000 claims.

However, separated data showed US producer prices fell more than expected in April. US PPI fell by 0.4% MoM and 1.3% YoY, missing expectations of +0.2% and -0.8% respectively.

The US dollar reacted higher after data and dragged EUR/USD to the 1.1395 area, although it quickly regained the 1.14 mark as the lack of inflation pressure offset the upbeat employment reading. At time of writing, the pair is trading at 1.1405, still up 0.46% on the day.

There is no much data scheduled for the rest of the day, but investors will be watching ECB’s Draghi speech at the IMF at 15:00 GMT.

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