U.S. initial jobless claims rise from low level, remain in line with solid labor market

Initial jobless claims rose from low level. In the week ended 22 September, the initial jobless claims rose to 214k, a slightly stronger rise than the expected 205k, noted Barclays in a research report. Despite the 12k rise, claims continue to be in line with a strong labor market and are also considerably below the 258k level of claims recorded a year ago.

Moreover, the prior week claims had dropped to their lowest level since November 1969, and some payback was expected from that very buoyant number. The less volatile four-week average of claims was widely unchanged at 206k, at the lower end of the current rebound.

“We view the claims data as consistent with low rates of job separation and continued strength in labor markets”, stated Barclays.

Meanwhile, continuing claims for the week ended 15 September rose to 1.66k and the insured jobless rate remained stable at 1.2 percent. State wise, the largest rises in claims were reported in California, Georgia and New Jersey. While Illinois, Iowa and Kansas reported the largest falls.

At 13:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 156.856. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex