US Unemployment Claims – Indicator Report
September 23rd, 2009 Posted in Market Movers
U.S. Unemployment Claims, also known as Jobless Claims, is a survey used to measure the number of individuals who filed for unemployment insurance for the first time during the past week in the United States of America. It is released on a weekly basis, about 5 days after the previous week ends.
Every state in the U.S offers jobless insurance programs that must conform to rules set down by federal law. The Labor Department in Washington then gathers all the data submitted by each state and releases the updated figures to the public on the following Thursday.
The number of unemployed individuals is an important gauge of general economic health because employed citizens are more likely spend and, therefore, more likely to increase total consumer spending.
How the Survey can Help the USD
Expectations for this month are suggesting that the U.S. Unemployment Claims have increased this week from 545K to 548K. It is no secret that the global financial picture is currently standing before a significant crossroad that is liable to have a profound impact on the upcoming year. Data is expected to indicate that after 2 consecutive weeks of decreasing levels for the report, the U.S. economy is once again suffering from a growing number of people filing for unemployment insurance, which could trigger a bearish trend in the EUR/USD. If all stays in line with market forecasts the EUR/USD pair may go lower towards the 1.4550 level once again level.
How the Survey can Hurt the USD
When the actual figure is lower than forecasted, traders are likely to see the USD depreciate against its currency pairs and crosses. After a series of positive data publications from the U.S., it is important to point that this can directly be correlated with U.S. Unemployment Claims. The U.S. economy might be salvaged from the current recession, but the recent economic upturn will surely help to ease some of the growing concerns seen lately, even if it is for just for a little while. In this case, investors will feel somewhat more secure to disperse funds in other markets, and by that action allow an extension of the current bearish trend of the USD. This scenario could get the EUR/USD to reach the level of 1.5000.
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