EU, US jobs report and PCE are on the data front

On Thursday, investors will focus on Germany's employment change and the EU's Unemployment data, which is expected to measure 6.7% against the previous figure of 6.8%. Meanwhile, the US initial jobless claims and the Fed's favourite inflation gauge, the PCE index, are highly expected later in the session.

Around the world, governments and central banks are still being squeezed by rising inflation. In Germany, the inflation rate hit 7.6% on Wednesday, sending the yield on the 2-year bond into positive territory for the first time since 2014.

The dollar cut further losses below the 98 mark

Having faded some of the optimism associated with the Russia-Ukraine peace talks, the US dollar index (DXY) has begun to react to economic indicators. As a result of weak annualized Gross Domestic Product (GDP) and ADP employment numbers, the DXY has slipped below 98.00. 

US data is highly expected for today

The US department of labour is set to report on jobless claims on Thursday. The report fell to its lowest level in 52 years last week. According to analyst forecasts, initial jobless claims will come in at 197,000, well above the 187,000 reported previously, but still at low levels compared to the pandemic's beginning two years ago.

US jobs reports should show that the labour market is in good shape, encouraging the US Fed to raise interest rates more aggressively. The Fed Funds Futures shows that market participants are already anticipating higher rate hikes. 

Personal spending is another crucial piece of data to be released on Thursday. It is estimated that the index will rise 0.5% for February compared to January, which is a lower rate than the 2.1% gain achieved in the prior month. It could be a sign that consumers cut back on spending due to higher energy and food costs.

Thursday also included will be the data on personal income. In February, we can expect personal income to rise by 0.5% compared with January's 0%.