U.S. initial jobless claims rise slightly in mid-June, but continue to signal healthy labor market

U.S. initial jobless claims rose slightly in mid-June. The initial and continuing jobless claims continue to hint at a healthy labor market. The initial jobless claims for the week ended 17 June rose by 3000 to 241k from 240k, coming in slightly more than consensus expectations of 240k.

The four-week moving average came in at 245k, consistent with levels seen in early April 2017. Continuing claims for the week ended 10 June rose slight to 1944k from an upwardly revised 1936k. But continuing claims have been lower than the 2mn mark seen since the start of April, which implies a solid labor market, noted Barclays in a research report. The insured jobless rate continued to be stable at 1.4 percent and stands two-tenths below year-ago levels.

State-wise, out of 53 states, 26 recorded a rise in jobless claims. California, Maryland and Wisconsin led the increase which recorded a rise of 3.5k, 0.9k and 1.1k respectively. In all, despite the modes rise in this week’s data on initial and continuing claims they continue to imply solid U.S. labor market conditions.

“We view the data as supportive of ongoing growth in employment at rates sufficient to keep the unemployment rate on a downward path”, added Barclays.

At 16:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 47.1933. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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