For a change, a big shift in US jobless claims was recorded: weekly unemployment claims fell from 376K to 350K. Similar numbers were last seen at the beginning of the year, when jobs were growing at a fast pace. This is a 4 year low.
However, there are two main reasons why this number is so different, so the celebrations will probably have to wait. Currencies are not really reacting.
USD/JPY, which usually rises on positive US data, continues lower and is now at 79.20. EUR/USD remains at low ground, around 1.2180.
The best data since March 2008 was probably skewed by:
Less summer shutdowns of auto plants: The data is seasonally adjusted. Normally, plants of car makers shut down for a summer break during this period. Thanks to strong demand, shutdowns were minimized by various companies. So, while this is genuinely good news that will not be later revised, it isn’t a change of trend, but rather a one time event.
Last week, Americans celebrated Independence Day. July 4th occurred in the middle of the week, and probably distorted the data as less unemployed people claimed benefits.Get the 5 most predictable currency pairs