Much focus has been placed on unemployment as a measure of the status of the economy. Today we have a measure of new claims for unemployment aid as a proxy for layoffs so a decline suggests that companies are cutting fewer jobs.
Trading Event: Unemployment Claims 12:30 GMT
- Weekly reports can be volatile; April payrolls posted the strongest monthly advance since 2012.
- The last two data sets for claims have been positive suggesting a stronger outlook for growth.
- Previous distortions in data have been attributed to the Easter holidays.
- Four week moving average which reduces the volatility in the weekly data edged higher last week by 4,500 to 324,750 but still drops below the average for this year so far.
- A slight rise in claims is forecasted today, with 321,000 new claims projected.
- Previous fall in claims may have been as a result of fewer people looking for jobs.
- Banc De Binary analysts predict that unemployment claims will likely rise this week, indicating a potential downward movement in the USD/JPY.