Forex broker attention is currently focused on U.S financial news, as the number of workers filing applications for jobless benefits fell to the lowest level in more than four years.
Forex broker attention is currently focused on U.S financial news, as the number of workers filing applications for jobless benefits fell to the lowest level in more than four years. About 350,000 people filed for initial jobless claims in the week ended July 7, down 26,000 from the previous week, according to the Bureau of Labor Statistics. The figure marks the lowest level of claims since March 2008, falling behind the 375,000 mark expected by economists.The news comes after last week’s disappointing monthly non-farm payroll jobs report, which showed disappointing figures of 80,000 added jobs in June. The figure is well below the 100,000 that experts calculate the economy needs to stand still and less than half the 200,000-plus the job market was adding each month in the winter. Jobless claims are a closely watched economic indicator, and while the latest weekly figures were better than expected, every forex broker is aware that factors such as the 4th of July holiday and its occurrence at the middle of the week could have impacted the figures.For now, currencies are not really reacting. The USD/JPY, which usually rises with positive U.S economic figures is keeping a decreasing trend, standing at the 79.20 mark. The EUR/USD remains at low ground, around 1.2180.Another important factor being kept in mind by forex broker analysts to interpret the new economic data is the diminishing shutdown in auto factory plants, thanks to a strong season demand. Normally, plants of car makers close down for a summer break, so while this is genuinely good news, it is not a changing trend, but a one-time event. However, the jobless claims numbers have fallen for three weeks in a row and the four-week moving average of claims, seen as a more reliable measure, fell by 9.750 to 376,500, its lowest level since late May. “The American economy is stuck in a new kind of normal, somewhere in between crisis and prosperity and unemployment will remain elevated for another five to six years” stated an official account of the Fed. “Still, Fed officials do not regard this as reason enough to expand the Fed`s efforts to stimulate growth”, concluded the account. Nevertheless, the Fed is disappointed about the performance of a variety of indicators showing smaller gains than anticipated. Commodity wise, concerns about global economy, especially from the Eurozone, are taking a toll on the price of oil. Forex broker reports saw benchmark U.S crude fell 87 cents to $84,94 per barrel in New York, while Brent crude lost 88 cents to $99,35 per barrel in London. In the same way, natural gas futures dropped more than 3 percent after the government said U.S supplies grew more than expected last week. Retail gasoline prices were flat at a national average of $3,384 per gallon.