Investors believe that this data is a sign that consumers will begin to slow down spending, cooling inflation.
He global dollar fell this Thursday, against most currencies, after economic data that showed more signs of weakening in the labor market of USA.
He dollar indexwhich compares the greenback with a basket of six major currencies, fell 0.22% to 105.28 units, while the euro gained 0.28% to 1.0775 dollars.
The pound sterling It advanced 0.18% to $1.2518, after the US data. It earlier fell to $1.2446, its lowest level since April 24, after the Bank of England will pave the way for a rate cut.
In front of and inthe dollar rose 0.03% to 155.52, as favorable opinions from members of the Bank of Japan They contributed to stopping the fall of the Japanese currency. He dollar has been slowly recovering against the Japanese currency after it sank 3.4% last week, its biggest weekly percentage drop since early December 2022.
Initial weekly claims for state subsidies unemployment in USA They rose by 22,000 to a seasonally adjusted 231,000, the highest level since late August and above the 215,000 expected by economists in a Reuters poll.
The data follows last week’s weaker-than-expected payrolls report and other figures that showed job openings fell to three-year lows in March.
In the United States, the monetary policy meeting of the Federal Reserve last week and the downward surprises in the growth of the employment have caused markets to increase bets on two rate cuts this year. But there remains a gap between Japan’s ultra-low yields and those of USA.
Market players see the weakening labor market as a sign that consumers will begin to slow spending and, in turn, help cool inflation. Next week the consumer prices (CPI), production prices (IPP) and retail sales.
“This morning there was a knee-jerk reaction to the decline in yields and the dollar after the jobless claims figure was released, which exceeded expectations,” said Karl Schamotta of Corpay in Toronto.
Schamotta said there were some seasonal distortions in the claims report that may have led to the higher reading, but added that recent economic data “suggests that we are seeing a slowdown in the world’s largest economy.”
Source: Ambito
