US Unemployment Claims Set to Generate Market Volatility

The dollar saw significant activity in the marketplace yesterday, following euro-zone news which led to risk aversion among investors. The USD/CHF shot up over 50 pips during the morning session, eventually peaking at 0.9828 before staging a downward correction. The pair eventually found support at the 0.9800 level. Against the British pound, the greenback gained more than 80 pips during early morning trading. That being said, sterling was able to recover during the second half of the day and eventually moved up close to 50 pips to trade as high as 1.5645. Turning to today, dollar traders will want to pay attention to several US indicators scheduled to be released during mid-day trading. The Unemployment Claims, Existing Home Sales and Philly Fed Manufacturing Index are all known to create market volatility. While the Unemployment Claims figure is forecasted to come in higher than last week, which could result in losses for the greenback, both the Existing Home Sales and Philly Fed Manufacturing Index are expected to show gains in the US real estate and manufacturing sectors. Should the indicators come in at their forecasted levels, the dollar could see gains against its main currency rivals during afternoon trading.

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