U.S. jobless claims fall at start of February, implies strong labor market

U.S. jobless claims drop in the week ended 3 February, suggesting continuation of strong labor markets. In the week ended 5 February, the initial jobless claims dropped to 221k from 230k, as opposed to consensus expectations of a rise to 232k. The four-week moving average dropped to 224k, the lowest in the current recovery cycle and also close to a historical low.

Meanwhile, continuing claims for the week ended 27 January also dropped to 1.923 million from an upwardly revised 1.956 million. The insured jobless rate remained the same at 1.4 percent. On balance, claims data continue to imply that labor market conditions remain strong, noted Barclays in a research report.

Region wise, overall half of all regions covered recorded a drop in claims. A few of states recorded huge declines. Among the ones that recorded declines were Missouri, California and New York. But, partially countering these declines were increases recorded in states such as Michigan and Ohio.

At 19:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at 36.8652. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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