Weekly jobless claims disappointed by a big margin: 374K .However, there might be good explanations for this jump, and it could be a one time event. They were expected to remain at low levels of around 307K after last week’s 308K. Continuing claims carried predictions of staying below 3 million. The moving average was expected to rise as the one time drop to 294K (due to computer issues in California) was now dropped off the average.
EUR/USD traded at around 1.350 before the release. GBP/USD climbed above 1.5950 and USD/JPY was around 97.75. The dollar is slightly lower after the release.
Apparently California can be partially blamed for the mess again. In addition, the government shutdown is also affecting the data.
The rare release of a US figure was supposed to move markets more than usual, but as the quality of the data is questionable, it leaves us more confused.
All in all, instead of standing out, this publication tells us little about the US economy.Â
Unemployment claims is one of the very few official economic indicators released by the United States during the government shutdown. The first Friday of the month passed without the usual market shaker: Non-Farm Payrolls.
Further reading: Central bank intervention can’t be far off as US debt talks stall
