Initial Jobless Claims and Long Term Unemployment -18th August, Forex Trading Update

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by: fxsolutions
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Date: Thu, 1 Sep 2011 Time: 8:42 AM
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Joseph Trevisani, Chief Market Analyst at FX Solutions (http://www.fxsolutions.com/), provides Forex traders with an overview of news surrounding the currency market on 18th August 2011, including a 9,000 rise in initial job claims.

"Initial jobless claims rose 9,000 to 408,000 in the week ending August 12th. Until the current week claims had been improving, declining by 23,000 over the past month. Although filings for unemployment insurance claims have been dropping overall since late April, they have, with the exception of last week, been above the indicative 400,000 level since the beginning of April, 18 weeks. Economists in the Bloomberg Survey had predicted an increase of 5,000 to 400,000.

The four-week moving average dropped 3,500 to 402,500. This is the lowest average since the third week of April when it was 409,000. The four week moving average, considered a more accurate representation of labor market trends than the volatile weekly number, has now fallen 37,750 since its peak at 440,250 in the second week of May.

Continuing claims in the week of August 5th gained 7,000 to 3.702 million; a rise of 12,000 to 3.700 million had been forecast. The prior week was revised 7,000 higher to 3.695 million from 3.688 million.

Emergency claims in the week of July 29th fell 27,700 to 3.1306 million from 3.1583 million. Claims have declined 652,900 since the beginning of the year but that is thought to be due to the expiration of benefits rather than reasbsorption of unemployed workers into the labor force. In the same week the number of recipients of extended benefits dropped to 527,500 from 543,500.

Currently 3.6581 million people are collecting unemployment benefits beyond the initial eligibility period. They are 7.3531 million people receiving either original or supplemental unemployment benefits."

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