U.S. initial jobless claims fall to new recovery-level low

U.S. initial jobless claims dropped to a new recovery-level low. In the week ended 1 September, the initial jobless claims dropped 10k to 203k, coming above consensus expectations of 213k. This is the lowest level of initial jobless claims during the current recovery and one of the lowest even recorded in the history of the series, noted Barclays in a research report.

The four-week moving average fell 2000 to 210k from 212k a week earlier. Continuing claims dropped 3k, to 1.797 million, in the week ended 25 August, resulting in the four-week moving average to fall to 1.719 million from 1.732 in the prior week. The insured jobless rate remained stable at 1.2 percent.

Even if the claims data have shown a great deal of stability in recent weeks and months, there is still an apparent downward trend in the initial claims data. The stability and trend in jobless claims indicates improvement in labor market conditions and very low rates of job separation, added Barclays.

At 13:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was highly bearish at -111.303. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex