U.S. Unemployment Claims (Weekly) Actual 621K, Expected 620K, Previous 625K
Release 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.
Trade Desk Thoughts: The number of new claims for unemployment benefits for the week ending May 30 decreased by 4,000 to 621,000, the Labor Department said today. Economists had expected to see 620,000 new claims. The four-week moving average, which aims to smooth volatility in the data, increased to 631,250 from 627,250 a increase of 4,000.
The advance rate for seasonally adjusted insured unemployment during the week ending May 23 was 5.0%, unchanged from the previous week’s unrevised rate of 5.0% The advance number for seasonally adjusted insured unemployment during the week ending May 23 was 6,735,000, a decrease of 15,000 from the prior week’s revised level of 6,750,500.
Forex Technical Reaction: S&P futures are trading in slightly positive territory. The dollar is trading higher across the board, and has strengthened slightly since the release.