Market Overview

US jobless claims settling very high

US initial jobless claims jumped last week to 412K from 375K, sharply contrasting the forecasted drop to 360K. Continued claims changed little over the week at 3,518K against the expected 3,430K.

The overall number for initial claims has changed little over the last six weeks, pointing to a more sluggish labour market. The number of unemployment insurance claims has also been very smoothly settling at levels twice as high as before mid-March last year.

The employment recovery has been losing dramatically in recent weeks, despite the economy’s high growth rate. As the Fed only expressed its view on monetary policy yesterday, markets should not be expected to take the new data as one of pushing monetary policy tightening to a later date. In this light, pressure on commodities and energy could persist, and the dollar could continue its recovery against significant competitors.

The FxPro Analyst Team

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