U.S. initial jobless claims rises, rate of separation in labor market falls

Initial jobless claims in the U.S. rose in the past week. In the week ended 25 August, initial jobless claims rose 3000 to 213k, consistent with Barclays expectations of 215k. The four-week moving average fell 2000 to 212k from 214k seen in the prior week.

Initial claims have shown a high degree of stability in the last seven weeks, varying between 211k and 222k since the week ended 14 July. Continuing claims dropped 20k to 1.708 million in the week ended 18 August, resulting in the four-week moving average to drop to 1.731 million from 1.736 in the prior week. The insured jobless rate remained stable at 1.2 percent.

Even if the claims data have largely moved sideways and shown a huge deal of stability in recent weeks and months, this stills implies rebound in labor market conditions, noted Barclays. Stable claims in the midst of ongoing rises in employment suggest declines in the rate of separation in labor markets.

At 16:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 46.6839. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex