The dollar continues to stay strong and the EUR/USD keeps falling. It has been down for five consecutive days, hovering around 1.1662 this week. The interesting thing is that the unemployment data released was not alarming, but the market loved it.

Initial unemployment claims in the U.S. reached 208,000 last week, slightly less than expected. What stands out most is that the moving average dropped to 211,750, but continued unemployment claims rose to nearly 1.9 million. In other words, fewer people are filing for unemployment for the first time, but more people are still on benefits. Strange, but that’s how the labor market is.

On the other hand, non-farm productivity grew significantly to 4.9%, which pleased traders. The dollar index is now at 98.88, the highest level since early December. Wednesday’s ADP data also helped, showing private payrolls increased but less than expected.

Now everyone is looking at the Friday payroll report expecting 60,000 new jobs. If it’s worse, the dollar will probably continue to gain ground. What’s clear is that the unemployment market shows signs of cooling down, but nothing alarming for now. The Fed remains in focus, with Stephen Miran insisting there’s room for more cuts this year.