Forex Trading News – U.S. unemployment on the track to recovery

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The U.S. employment sector appears to be on track to recovery based on jobs data released today. The number of initial jobless claims for unemployment benefits declined more than expected for the previous week by 29,000, from a revised 438,000 down to 409,000.

Meanwhile, continuing jobless claims also dropped more than expected from the forecasted 3.720m down to 3.711m, down from the previous 3.792m.

The news particularly helped the Dollar gain against the Japanese Yen. The USD spiked 10 pips within a minute to 81.98 after the data release, from 81.88 just before.

The greenback also gained temporarily against the euro, with EURUSD dropping from 1.4264 down to a low of 1.4219.

Data may be indicating that unemployment is falling, however, as Federal Reserve President William Dudley mentioned in his speech in New Paltz, New York today, he said that unemployment still remains “unacceptably high” and most measures of underlying inflation trends remain below the Fed’s comfort zone.

“The recovery remains moderate and we still have a considerable way to go,” said Dudley, who is seen as one of the more dovish Fed officials.

Referring to the fact that the U.S. economy added 244,000 jobs in April, according to the Non-Farm Payroll report, he said “I am hopeful that job growth will continue to strengthen in coming months.”