US Jobless claims data again fell short of expectations

US weekly unemployment claims once again fell short of expectations. The number of initial claims rose from 866K to 870K with expectations of 845K. The number of continued claims fell from 12.75M to 12.58M, worse than the expected 12.3M.

Continued claims numbers are falling, albeit at a much slower pace than expected, while the stabilization of initial applications for benefits at 880K over the last four weeks is a worrying sign.

The current level is four times higher than before the pandemic hit and without further decline, it will signal a possible halt in the economic recovery.

Strictly speaking, this is more negative news for markets, but the big question now is, isn’t the market tired of the sell-off?

The FxPro Analyst Team