U.S. Unemployment Claims (Weekly) Actual 601K, Expected 639K, Previous 635K
Explanation: This report provides the number of people claiming new
unemployment benefits and the number of people who are continuing to
claim unemployment benefits. Both metrics are provided in weekly and in
4-week moving average form. Very important economic forecasts are based
on the labor market. “Economic strength builds from the
willingness/confidence of firms to hire, without a strong labor market
growth is hard to achieve”, TheLFB-Forex.com Trade Team members said.
“Over time the Employment Data will affect all economic releases, it
does however take time for labor trends to form. A currency will
strengthen or weaken in-line with the other releases that the
Employment Data impacts, rather than as a knee-jerk reaction to these
numbers printing”, they added. Economists tend to look more at the
4-week numbers because weekly numbers can be volatile although the
market reacts to the headline numbers initially.
Thoughts: The number of new claims for unemployment benefits for the
week ending May 02 decreased by 34,000 to 601,000, the Labor Department
said today. Economists had expected to see 631,000 new claims. The
four-week moving average, which aims to smooth volatility in the data,
fell to 623,500 from 638,250 a decrease of 14,750.
The advance rate for seasonally adjusted insured unemployment
during the week ending April 18 was 4.8%, an increase of 0.1% from the
previous week’s unrevised rate of 4.7% The advance number for
seasonally adjusted insured unemployment during the week ending April
25 was 6,351,000, an increase of 56,000 from the prior week’s revised
level of 6,295,000.
Forex Technical Reaction: S&P futures
continue to trade in positive territory and have advanced since the
release. The dollar has strengthened, overall, since the release and is
trading mixed against the other major currencies