For a change, a big shift in US jobless claims was recorded: weekly unemployment claims fell from 376K to 350K. Similar numbers were last seen at the beginning of the year, when jobs were growing at a fast pace. This is a 4 year low.
However, there are two main reasons why this number is so different, so the celebrations will probably have to wait. Currencies are not really reacting.
USD/JPY, which usually rises on positive US data, continues lower and is now at 79.20. Â EUR/USD remains at low ground, around 1.2180.
The best data since March 2008 was probably skewed by:
Less summer shutdowns of auto plants: The data is seasonally adjusted. Normally, plants of car makers shut down for a summer break during this period. Thanks to strong demand, shutdowns were minimized by various companies. So, while this is genuinely good news that will not be later revised, it isn’t a change of trend, but rather a one time event.
Last week, Americans celebrated Independence Day. July 4th occurred in the middle of the week, and probably distorted the data as less unemployed people claimed benefits.
Further reading: US Gained Only 12K Jobs in May According to Bernanke’s Highlighted Indicator
