US: Initial Jobless Claims rose to 219K last week
According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance increased to 219K for the week ending April 4.
  • Initial Jobless Claims increased to 219K vs. the previous week.
  • Continuing Jobless Claims went down to 1.794M.

According to a report from the US Department of Labour (DOL) released on Thursday, the number of US citizens submitting new applications for unemployment insurance increased to 219K for the week ending April 4. The latest print came in above initial estimates and was higher than the previous week’s 203K (revised from 202K).

Additionally, the 4-week moving average went up by 1.5K, bringing it to 209.5K from the revised average of the previous week (208K).

The report also indicated that Continuing Jobless Claims fell by 38K to 1.794M for the week ending March 28.

Market reaction

The Greenback retreats marginally amid steady uncertainty in the geopolitical landscape, with the US Dollar Index (DXY) navigating the area just below the key 100.00 threshold.

Employment FAQs

Labor market conditions are a key element to assess the health of an economy and thus a key driver for currency valuation. High employment, or low unemployment, has positive implications for consumer spending and thus economic growth, boosting the value of the local currency. Moreover, a very tight labor market – a situation in which there is a shortage of workers to fill open positions – can also have implications on inflation levels and thus monetary policy as low labor supply and high demand leads to higher wages.

The pace at which salaries are growing in an economy is key for policymakers. High wage growth means that households have more money to spend, usually leading to price increases in consumer goods. In contrast to more volatile sources of inflation such as energy prices, wage growth is seen as a key component of underlying and persisting inflation as salary increases are unlikely to be undone. Central banks around the world pay close attention to wage growth data when deciding on monetary policy.

The weight that each central bank assigns to labor market conditions depends on its objectives. Some central banks explicitly have mandates related to the labor market beyond controlling inflation levels. The US Federal Reserve (Fed), for example, has the dual mandate of promoting maximum employment and stable prices. Meanwhile, the European Central Bank’s (ECB) sole mandate is to keep inflation under control. Still, and despite whatever mandates they have, labor market conditions are an important factor for policymakers given its significance as a gauge of the health of the economy and their direct relationship to inflation.

يعتمد أكثر من مليون مستخدم على FXStreet للحصول على بيانات سوقية لحظية، وأدوات رسوم بيانية، ورؤى خبراء، وأخبار الفوركس. يساعد تقويمهم الاقتصادي الشامل والندوات التعليمية عبر الويب المتداولين على البقاء على اطلاع واتخاذ قرارات محسوبة. لدى FXStreet فريق يضم حوالي 60 محترفًا موزعين بين مقر برشلونة ومناطق عالمية مختلفة.
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