US Unemployment Claims down to Mid-April low, as the reading bashed the forecasts of analysts of 255k. How is the USD trading post the release?
6 October, AtoZForex – US unemployment claim is a measure of the number of individuals, who filed for unemployment insurance. For the first time during the past week, the market expected an increase to 255k unemployment claims. Instead, US Unemployment Claims went down to 249k, close to the lows of the reading in Mid-April.
US Unemployment Claims down to Mid-April
- Unemployment Claims actual reading came in at 249k
- A lower reading than expected post the forecasts of 255k
- Previous number filed US Unemployment Claims was 254k
US unemployment claims down (Source: US Department of Labor)
It marks already the 83rd consecutive week that the unemployment claims have stayed below the 300,000 level, indicating a strong US labor market. The robust data comes in a day just before the Nonfarm Payrolls figures of tomorrow.
How is USD trading post the data release?
AtoZ Forex’s morning FX tips, already indicated that the USD will appreciate if the US Unemployment Claims would come in weaker than expected. As the Unemployment claim count decreased, USD has strengthened. Meanwhile, gold continues its bearish direction, which started in September after a break of the key support level at $1302. Expect further downside movement for gold to the 1244/43 levels, where it will see a strong support.
With NFP data tomorrow we can likely see further continued strengthening of the USD.
Trading USDGBP and USDJPY?
Traders should look at the possible opportunities presented here. As GBP is making historical lows and look for bullish opportunities in the case of USDJPY tomorrow.
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