US Jobless Claims Jump back to range, personal income

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The weekly unemployment claims figure rose back to the previous range, after touching 5 year lows. The market expected a jump to 362K. The past previous weeks have been superb: 335K and 330K.

There were doubts about these numbers, on tone time effects. The leap back to the previous range confirms these doubts. The 4-week moving average remains low.

A big surprise was seen in personal income: +2.6%, far better than 0.7% that was expected. Did people get big bonuses towards the end of the year? Perhaps this was related to the fiscal cliff? This will probably be followed by a sharp fall, as history shows.

EUR/USD was trading around 1.3550 before the release. USD/JPY was steady around 91.

The Fed’s focus is on jobs. ADP came out better than expected, with a gain of 192K, but the data for December was revised to the downside. Tomorrow’s Non-Farm Payrolls will rock the markets.

See how to trade the NFP with EUR/USD.

Other figures:

  • Personal spending:+0.2% vs. +0.4% expected.
  • Core PCE Price Index: flat vs. +0.1% expected.
  • Employment Cost Index: +0.5% vs. +0.6% expected.

In Canada, GDP came out better than expected.

 

 

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.