Dollar drops and stocks soar after today's macro data

Traders sold the greenback on Thursday and it erased earlier gains as the US jobs market continued to deteriorate, but equity investors pushed the indices sharply higher.

Earlier in the day, the Eurozone composite purchasing manager's index fell to 13.5 in April, from 29.7 in the previous month, a record low in more than 22 years of the history of the survey, and below even the lowest estimate of 18.0. 

The manufacturing component tumbled from 44.5 in March to 33.6 in April, below the 39.2 expected, but it was the collapse in Services that was shocking, collapsing more than 50% from 26.4 to 11.7.

The EURUSD pair fell below the 1.08 threshold after these miserable numbers.

However, the US jobless claims showed that n the last week, 4.427 million Americans filed for unemployment benefits for the first time. That brings the total job losses to 26.5 million in a month. 

The greenback lost its ground after this news, and the EURUSD pair returned above the 1.08 level. US stocks rocketed higher after the jobless claims data, but we are now used to this. 
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