U.S. Unemployment Claims (Weekly) Actual 610K, Expected 657K, Previous 663K
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 April 11 dropped by 53,000 to 610,000, the Labor Department said today. Economists had expected to see 657,000 new claims. The four-week moving average, which aims to smooth volatility in the data, decreased 8,500 to 651,000.
The advance number for seasonally adjusted insured unemployment during the week ending April 4 was 6,022,000, an increase of 172,000 from the previous week’s revised level of 5,850,000. The unemployment rate for workers with unemployment insurance rose 0.1 percentage point to 4.5%, the highest since May 1983.
Forex Technical Reaction: S&P futures have been all over the place this morning, reacting to JPMorgan earnings and this morning’s economic releases. Currently S&P futures are in positive territory but below the highs of the morning. The dollar has not responded to the releases, trading flat since the announcement