US: Initial Jobless Claims jumped to 236K last week
The number of US citizens submitting new applications for unemployment insurance went up to 236K for the week ending December 6, according to a report from the US Department of Labour (DOL) released on Thursday.
  • Initial Jobless Claims rose to 236K the week ending December 6, compared to revised 192K the previous week.
  • Continuing Jobless Claims edged lower to 1.838M from the previous 1.937M.

The number of US citizens submitting new applications for unemployment insurance went up to 236K for the week ending December 6, according to a report from the US Department of Labour (DOL) released on Thursday. The latest print came in above initial estimates (220K) and was higher than the previous week’s 192K (revised from 191K).

Additionally, the 4-week moving average increased to 216.75K from the 214.75K average of the previous week. Finally, Continuing Jobless Claims improved to 1.838M.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Australian Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD -0.40% -0.24% -0.48% -0.16% 0.16% -0.18% -0.66%
EUR 0.40% 0.16% -0.09% 0.24% 0.57% 0.22% -0.26%
GBP 0.24% -0.16% -0.23% 0.08% 0.41% 0.06% -0.42%
JPY 0.48% 0.09% 0.23% 0.33% 0.66% 0.29% -0.17%
CAD 0.16% -0.24% -0.08% -0.33% 0.33% -0.04% -0.48%
AUD -0.16% -0.57% -0.41% -0.66% -0.33% -0.35% -0.83%
NZD 0.18% -0.22% -0.06% -0.29% 0.04% 0.35% -0.48%
CHF 0.66% 0.26% 0.42% 0.17% 0.48% 0.83% 0.48%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Market reaction

The Greenback resumed its slide on the news, with the US Dollar Index (DXY) easing to the 98.20 region, its lowest in roughly two months.

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.

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