Greenback Weakens amid Higher U.S Jobless Claims and Lower Housing Starts - 16.8.2012
U.S Jobless Claims increased by 2,000 to 366,000 in the previous week compared to a revised 364,000 two weeks ago according to the U.S Labor Department. Market participants were expecting the Unemployment Claims to increase to 365,000 but it was slightly missed, additionally the 4-week average dropped by 5,500 to 363,750
U.S Building Permits rose by 6.8% to 812,000 in July up from 760,000 Building Permits in June, they increased more than the projection at 770,000 according to the U.S Census Bureau. However, new houses built in the United States in July dropped to 746,000 down from the revised 754,000 Housing Starts in June and lower than forecasts of 757,000. The greenback weakened against the Euro after labor data indicated the Jobless Claims increased and Housing Starts dropped. The EURUSD rose from 1.2275 to 1.2326 immediately after the announcement.