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The Dollar remains practically unaffected

The impact on the Dollar of the higher than expected US Jobless Claims in the US has been muted, as the pair remains consolidating losses near eight-year lows, at 0.8335. First-time claims for unemployment benefits increased by 218K in the US on the week of December, 15. This reading beats the market consensus of 110K and is significantly higher than the 206K upward revised level seen in the previous week.

These figures add to evidence that the US labour market is losing pace, which endorses the narrative of a soft landing and bolsters the case for Fed cuts in 2024. Later today, the US Pending Home Sales are expected to have increased by 1% in November, following a 1.5% decline in October. These figures might provide some support for the US Dollar. The technical picture remains bearish, although the heavily oversold levels allow for some correction. Resistances are at 0.8400 and 0.8515. On the downside, below the intra-day low at 0.8340, the next target is 2015 low at 0.8300.