No major surprises from the weekly barometer of the US labor market: jobless claims are up to 277K, within expectations. Last week’s number was revised down 1K to 273K.
The US dollar is marginally stronger after the publication, with the exception of the Canadian dollar: Canadian wholesale sales beat expectations by rising 1.3%, so USD/CAD is sliding to 1.3123.
US jobless claims were expected to stand at 272K this time after 274K last week (before revisions).
The US dollar was on the back foot against majors but was looking good against commodity currencies.
Continuing claims carried expectations for 2.265 million. The actual number was 2.254 million, also very much within early estimates. Both figures have been very steady of late.
At the same time in Canada, wholesale sales were predicted to bounce back by 1% after a slide of a similar magnitude beforehand. The Canadian dollar suffered the slump in oil prices.
The FOMC’s meeting minutes did not feed the dollar bulls: the members showed some skepticism about wage rises and inflation in general. The moment to raise rates might be getting closer, but there are growing doubts about a move in September.
In addition, the minutes were from a meeting held before the yuan devaluation mini-crisis and the fall of crude prices.
However, some analysts certainly the Fed moving in September: September hike still on the cards after FOMC Minutes – CIBC
We still have the existing home sales and the Philly Fed Manufacturing Index awaiting us.