EURUSD drops despite catastrophic US jobless claims


The EURUSD pair declined 1% on Thursday and was trading at around 1.0850 during the US session as investors once again sought the safety of the US dollar. 

After last week's unprecedented 3.3 million surge in initial jobless claims, this week's is even more unprecedented, adding a stunning 6.648 million for a two-week sum of 10 million new Americans claiming unemployment benefits. The US labor market died very quickly and very intensely. 

In Europe, the situation is very similar. The Spanish unemployment change for March rocketed to 302,000, up from -7,800 previously. More and more people will be unemployed shortly as the virus ravages countries across the world. 

Moreover, Bloomberg's Consumer Comfort Index has plunged to its lowest since June 2018 in the most significant two-week drop in consumer comfort ever.

US equities sold-off after these numbers, but they were trying to stay in positive territory, having erased intraday gains. It looks unlikely that such a substantial economic shock will dissipate soon. Thus many analysts expect further losses for equity markets.
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