The weekly figures provided by the US Department of Labor (DOL) on Thursday indicated that Weekly Jobless Claims reached 264,000 in the week ending May 6. The figure comes in above market predictions of 245,000 and follows the prior week’s unrevised figure of 242,000.
“The 4-week moving average was 245,250, up 6,000 from the unrevised average of 239,250 the previous week.” This average has reached its highest level since November 20, 2021, when it was 249,250.”
Continuing Claims climbed by 12,000 in the week ending April 29 to 1.813 million, falling short of the market estimate of 1.82 million. It is at its lowest point in three weeks.
“The previous week’s level was reduced by 4,000 points, from 1,805,000 to 1,801,000.” The four-week moving average increased to 1,829,500. 2,250 points higher than the previous week’s corrected average. The prior week’s average was lowered down by 1,000 to 1,827,250.”
The market’s reaction
The US Dollar declined across the board following the April Producer Price Index and Jobless Claims releases. The DXY is still up for the day, but at lows around 101.70.
The US Dollar has gathered bullish momentum early Thursday after having struggled to find demand following the April United States (US) inflation data on Wednesday. The US Dollar Index (DXY) stretches higher toward 102.00 and stays in positive territory for the week.
US Bureau of Labor Statistics (BLS) reported on Wednesday that the Consumer Price Index (CPI) rose 4.9% on an annual basis in April. This reading followed the 5% increase recorded in March and came in below the market expectation of 5%. With the initial market reaction, the USD started to weaken against its rivals. With investors remaining convinced that the US Federal Reserve (Fed) will pause its tightening cycle in June.
