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U.S. initial jobless claims edged down again last week to 190k

U.S. initial jobless claims edged down again last week to 190k By Investing.com

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Economic Indicators 3 hours ago (Mar 02, 2023 08:38AM ET)

(C) Reuters.

By Geoffrey Smith

Investing.com — The U.S. labor market continued to defy forecasts for a slowdown last week, as the number of people filing initial claims for jobless benefits fell again.

Initial jobless claims edged down to 190,000 from 192,000 the previous week, again failing to corroborate the visible rise in layoffs across much of the U.S. economy. Analysts had expected a modest rise in initial claims to 195,000.

Continuing claims, meanwhile, stayed stuck at 1.65 million. After rising from a historic low of 1.3 million in the middle of last year, continuing claims – which are seen as a better indicator of how easy or difficult it is for the newly unemployed to find work – have drifted marginally lower through the first two months of 2023.

The data are the only labor market numbers due from the U.S. this week, with the key nonfarm payrolls report pushed back to March 10th.

Other data released at the same time, however, added to the body of evidence over the last couple of weeks suggesting that more inflationary pressure remains in the U.S. economy than the decline in headline consumer prices over recent months would suggest.

Unit labor costs rose by 3.2% in the fourth quarter of last year, accelerating again after two quarters of relatively subdued gains. Unit labor costs, which are a rough measure of productivity, rose strongly throughout the pandemic, but had moderated clearly as the disruptions to the economy from lockdowns and supply chain bottlenecks faded. Over the same period, nonfarm productivity rose by only 1.7%, rather than the 2.6% expected.

The numbers added to pressure on U.S. bonds, which have been steadily repricing a higher trajectory for interest rates over the last week. The benchmark two-year Treasury note yield rose 5 basis points to 4.94%, while the 10-Year note yield, which breached 4% for the first time since November on Wednesday, rose 8 basis points to 4.08%.

The Dollar Index , which tracks the greenback against a basket of advanced economy currencies, rose another 0.6% to 105.02.

U.S. initial jobless claims edged down again last week to 190k

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Dollar firms after U.S. labor data points to further Fed tightening

Euro rally pauses ahead of Europe inflation data By Reuters

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Economy 2 hours ago (Mar 02, 2023 04:06AM ET)

(C) Reuters. FILE PHOTO: U.S. Dollar banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

By Joice Alves and Tom Westbrook

LONDON/SINGAPORE (Reuters) – The euro fell against a strengthening dollar on Thursday, after having posted its largest one-day gain in a month, ahead of euro zone inflation data that could renew the rally in the currency.

The euro rose 0.9% on the dollar on Wednesday, marking its biggest daily jump in a month, following hotter-than-expected German inflation in February that added to pressure on the European Central Bank to raise rates after unexpectedly strong readings in France and Spain. It was 0.35% lower at $1.0633 ahead of inflation data due at 1000 GMT.

But investors are taking the view that the euro is poised to rise as markets are bracing for another high reading.

“Contrary to expectations the data for the euro zone due today might not show a small fall but instead also record a further rise. The same applies for core inflation,” said Antje Praefcke, a foreign exchange analyst at Commerzbank (ETR:CBKG).

“As a result the ECB rate expectations might be adjusted to the upside again.” That would likely send the euro higher, she added.

Sterling was held back by remarks from Bank of England Governor Andrew Bailey, who said “nothing is decided” on future rate increases which had traders trimming back bets on higher rates. Sterling was down 0.5% to $1.1964. [GBP/]

The dollar index, which measures the U.S. currency against six others – rose 0.39% to 104.79, boosted by a rise in U.S. Treasury yields and after Federal Reserve official Neel Kashkari left the door open to a 50-basis point rate hike at the Fed’s next meeting in March.

Elsewhere the yen fell 0.37% to 136.72 to the dollar, while the Australian and New Zealand dollars and the Chinese yuan wavered slightly after strong gains on Wednesday that were supported by roaring Chinese manufacturing data.

The Aussie dollar was last 0.44% softer at $0.6729. The New Zealand dollar, which rose 1.2% on Wednesday, fell 0.7% on Thursday to $0.6214.

China’s yuan settled back to 6.9125 to the dollar after logging its biggest jump of 2023 on Wednesday.

Investors are looking ahead to China’s National People’s Congress meeting, which begins on Sunday, watching for guidance on policy support for the post-COVID recovery.

“Yesterday’s positive surprise in the PMIs for China in February are a positive for mining commodity prices and the currencies of countries that export them,” said Commonwealth Bank of Australia (OTC:CMWAY)’s head of international economics, Joe Capurso.

“The yuan and commodity currencies such as the Australian and New Zealand dollars can rise materially if the meeting sends a pro-growth signal, as we expect,” he said.

Bitcoin slipped 1% to $23,395 as trouble at crypto lender Silvergate weighed on the mood.

Besides European inflation, euro zone employment and central bank minutes are due later in the day, as are U.S. jobless claims data.

Euro rally pauses ahead of Europe inflation data

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Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.