Initial unemployment claims in the U.S fell more than expected helping dollar gain some ground ahead of the ISM manufacturing data which may not come out as expected.
The U.S. Department of Labor report showed fewer Americans applied for new jobless claims for benefits which dropped 12,000 to a seasonally adjusted 409,000 for the week ending August 27. Economists had forecast claims falling to 410,000 last week. The prior week’s claims were revised up to 421,000 from the previously reported 417,000.
The numbers still highlighted weakness in the job market which is struggling to find strength, but is at least well short of a recession signal.
While today’s weekly claims data is no precursor to nonfarm payrolls count to be released on Friday for the month of August, it showed no evidence that businesses responded to the recent financial market turmoil by aggressively laying off workers.
Previous month’s numbers showed payrolls rose 117,000. August Nonfarm employment is expected to rise 75,000 according to predictions, dampened by a strike at the large U.S. telecom corporation, Verizon Communications. About 45,000 Verizon workers went on strike during the survey period for August payrolls.
Dollar got a brief boost after the initial jobless claims data and risk currencies were lifted as well.