US jobless claims rose above 300K to 302K, as expected. However, the lack of a significant revision from last week is positive news. On the contrary, last week’s number was revised to the downside: 279K. US jobless claims were expected to bounce back above 300K to 303K, after they fell to an 8 year low of 284K last week (before revisions). Due to known volatility during this month, the drop was taken with a grain of salt at the time. However, now even the 4 week week moving average is below 300K.
The dollar was looking good towards the publication, with EUR/USD sliding once again to 1.3375, GBP/USD at 1.6875 and USD/JPY still shy of 103. This sends USD/JPY for another attempt on 103. The greenback is strengthening against other currencies as well, but the moves aren’t huge.
Continuing claims rose from 2.508 (after revisions) to 2.539 million. This isn’t positive, but the overall picture of the jobless claims report is certainly good.
The US employment cost index, yet another measure of inflation, was expected to rise by 0.5% in Q2 after 0.3% in Q1. The actual result is a rise of 0.7% – more good news.
Specifically, wages are up 0.6% and benefits are up 1%. The total figure of costs is at the highest since 2009.
USD/CAD traded above 1.09, at 1.0915: Canada released its monthly GDP figure for May at the same time and it came out better than expected. Nevertheless, the dollar’s strength is clearly seen.
Yesterday’s excellent GDP number from the US still boosts the greenback, and the not-too-hawkish message from the Fed has faded away.