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For the first time this week, the dollar has had a better time of it, boosted by some much better-than-expected jobless figures. In the week ended January 15th, initial claims fell 37K to 404K, after a 30K increase in the previous week.

Guest post by FxPro

Apart from the 393K claims outcome recorded in the week before Christmas, claims are at their lowest level since mid 2008. Continuing claims fell by another 26K to 3.86m, the lowest since late 2008. As we have been suggesting recently, with the exception of the monthly payrolls survey, there has been some definite improvement in the US labour market over recent months.

In response, longer-dated treasury yields have risen 7bp to 3.39%, and the dollar is higher. Against the euro, the dollar has strengthened to 1.3470, cable has fallen from above 1.60 to just above 1.59, and USD/JPY is up at 82.70 after threatening 82.0 earlier.

By Michael Derks, chief strategist, FxPro.