U.S. initial jobless claims fall in early August, indicate towards strong labor markets

U.S. initial jobless claims continue to be low. In the week ended 4 August, the initial jobless claims dropped to 213k from 219k. The outturn was above consensus expectations of 220k, and took the four-week moving average lower to 214k, adding to evidence of a sound labor market, noted Barclays in a research report.

For most of 2018, jobless claims have continued to stay in the range of 215k-230k, and are yet to see any impact of anti-trade policies on employment. Forward looking business surveys such as the ISM have flagged worries regarding protectionism in recent months, but show that firms’ hiring intentions stay in place. Meanwhile, continuing claims for the week ended 28 July rose to 1.755k from 1.726k. The insured jobless rate remained stable at 1.2 percent.

At 20:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 2.89748. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex