Jobless Claims Fall, Risk of Fed Hawkishness Remains
The number of applications for unemployment benefits in the United States fell last week, signaling that the labor market remains relatively stable. Data on Thursday (July 16) showed that companies are still inclined to retain workers despite the economy facing pressures from inflation and global uncertainty.
The US Department of Labor reported that initial jobless claims fell by 8,000 to 208,000 for the week ending July 11. This figure was lower than economists' forecasts of 217,000.
Continuing claims, which reflect the number of people still receiving unemployment benefits, also fell to 1.81 million in the previous week. This figure was lower than market expectations and reinforced the view that labor market conditions have not shown significant weakness.
New applications are now back at relatively low levels historically after rising in May and early June. The four-week average of initial claims also fell to 214,250, indicating a stabilizing trend in jobless claims.
As for the market impact, solid employment data could support the US dollar and Treasury yields, as the economy is considered to remain strong. However, with previously more subdued CPI and PPI data, the market still believes the Fed doesn't need to rush to raise interest rates anytime soon. (arl)
Source: Newsmaker.id
