Forex News – U.S. initial jobless claims rise

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The U.S. released initial jobless claims data today which showed more Americans filed first-time claims for unemployment benefits last week, which is an indication companies are less confident about the expansion than they were earlier this year. The result was more than had been expected and is evidence that the US labour market is still suffering.

Initial claims for state unemployment benefits climbed 9,000 to a seasonally adjusted 429,000, the Labour Department said today. Economists had expected claims to come in at 415,000.

The report covers the survey period for the government’s closely watched data on nonfarm payrolls for June.

Claims rose 15,000 for the survey period that covers May and June , implying another soft month for jobs in June after a modest 54,000 increase in payrolls in May.

“Again no quick rebound in employment. We’re still in the soft patch that we have had for a couple of months now,” said Sean Incremona, an economist at 4CAST in New York.

The data underline what US Federal Reserve Chairman Ben Bernanke said in press conference yesterday that job growth is “frustratingly” slow, a reason policy makers pledged to maintain monetary stimulus. U.S. stock index futures extended losses on the report, while prices for Treasury debt advanced. The dollar briefly trimmed gains versus the euro and yen.

“The numbers still remain elevated, and they’re still consistent with a labor market that’s improving at a glacial pace,” said Brian Jones, an economist at Societe Generale in New York. “This fits in with Bernanke’s view that the labour market improvement is just not enough.”

USDCHF fell 56 pips after release of the data, falling to a session low of 0.8376 within an hour from pre news level at 0.8432.