Market Overview

US weekly jobless claims marked further progress in the economy

The number of initial claims for the week to 28th of August fell to 340K (new pandemic lows) from 354K the week earlier. The number of continued claims fell by 160K in the week to 21st of August to 2,748K.

Americans are getting more active in starting new jobs amid the imminent end of unemployment benefits this month. Current wage levels seem closer to expectations than before. In addition, there is a record supply of open jobs on the market.

Positive data for the economy was not perceived as a threat to tapering Fed’s support. On the contrary, we see an increased demand for risk, with the S&P500 and Nasdaq making new highs. The Dow Jones is just 0.4% below its record.

On this news, dollar selling has intensified, sending DXY to 4-week lows. Oil is rallying over 3% since the start of the day. Gold again won support on the drop to $1805, returning to $1812, but kept below $1820 this week.

The FxPro Analyst Team

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