The USA will publish unemployment claims on October 22 at 15:30 MT time. How to trade after the release?
American weekly jobless claims show the lowest result since 1969
The previous week, the number of US citizens who filed applications for unemployment benefits headed south to a 49-1/2-year minimum, thus indicating sustained labor market strength, which could tame expectations of a steep deceleration in the economic surge.
As a matter of fact, initial claims for state unemployment benefits inched down 8,000 to a seasonally updated 196,000 by April 6 that appears to be the lowest outcome since October 1969. Apparently, claims have slipped for four weeks in a row. As for data for the previous week, it was updated to reveal extra 2,000 applications.
Market experts had foreseen claims would jump to 211,000 for the last week. As the Labor Department informed, no states were assessed the previous week.
The four-week moving average of initial claims, a gauge of labor market trends, headed south 7,000 the previous week hitting 207,000, which appears to be the lowest result since early December 1969.
Eventually, the labor market happens to be the key pillar of support for the US economy that turns out to have lost momentum in the first quarter due to the fact the stimulus from a $1.5 trillion tax trim package recedes and a trade conflict between America and China as well as softening global demand affected exports.
As for nonfarm payrolls, they inched up by 196,000 jobs in March, which is above the 100,000 required per month to keep up with surge in the working-age population. Additionally, the unemployment rate accounts for 3.8%, which is close to the 3.7% Fed policy makers project by the end of 2019.
US Core monthly retails sales will be announced on Friday at 15:30 MT time.
Riskier assets and gold ended last week with huge gains due to the weak US dollar’s performance. Let’s discuss what will drive the markets today.
The focus of traders’ attention shifted from Brexit and the US stimulus to the coronavirus . The WHO claimed that Europe become the new Covid-19 epicenter.
Canada will publish the monthly GDP growth on October 30 at 14:30 MT time.
The European Central Bank publishes the monetary policy statement alongside with an update on the interest rate on October 29, at 14:45 MT time.