This Unemployment Claims Data Is An Early Indicator Ahead Of The NFP!

 The number of Americans submitting new claims for unemployment benefits is in line with the recovery of vigorous economic activity and an increase in vaccinations.

Initial claims for unemployment benefits were $ 385,000 for the week ended July 31, according to a report released by the Department of Labor on Thursday. The figure is a positive one as unemployment claims have dropped by 14,000 from the previous week as the job market grows in tandem with economic growth.

In general, the four -week claims reading fluctuated with little change at 394,000. The total number of unemployment claims over the past two months has performed better than in May which recorded an average of 400,000. This is driven by the opening of several economic sectors such as the hospitality and leisure sectors.

The number of continuous claims showed a sharp decline with a decline of 366,000 to 2.93 million, the first time continuous claims fell below 3 million since March 14, 2020.

The US dollar was still trading lower against major currencies by down 0.02% to 92.255. Market players are focused on the NFP that will be released tomorrow.

At the same time, the market is still taking a cautious stance following the contagion of the Delta Covid-19 variant which has caused some areas to reintroduce restrictions.

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