Significant decline of the US weekly jobless claims
Initial unemployment claims reached the lowest level since November 15, 1969, with figures coming in at 199,000. The report single-handedly beat the 259,000 forecasted.
Despite the Labor Department not indicating any particular factors that caused the significant decline, analysts believe it was partly due to seasonal adjustments.
At the same time, the continuing claims fell to 2.05 million, reaching a new pandemic-era low and pointing to a tightening of the labor market.
The positive data comes when the surging inflation in the US is running at its fastest pace in 30 years. Ports and supply chains have been important contributors to higher prices as manufacturers and service providers meet surging demand.
Moreover, the weekly unemployment claims decline might get Fed’s, who has kept crisis-level policies in place regardless of the improvement in the job market. The Fed has already announced a gradual decrease in the monthly bond purchases, indicating that it might raise interest rates in 2022.
Sources: cnbc.com, forexfactory.com
This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com
JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.