U.S. initial jobless claims decline more than expectations, add to certainty over Yellen’s hint at policy tightening

The United States labor market is showing signs of tightening as the initial jobless claims for the week ended December 10 declined more than market expectations, adding certainty over the Federal Reserve Chair Janet Yellen’s hint at triple rate hikes in the upcoming year.

U.S.’s unemployment benefits declined to 254,000, from 258,000 in the previous week, data released by the country’s Labor Department showed Thursday. Reuters survey had expected a drop to 255,000. Further, the 4-week moving average rose 5,250 to 257,750 from last week’s average of 252,500.

In addition, the rate of unemployment fell to 4.6 percent in November, data released showed earlier this month. Fed officials projected the unemployment rate will average 4.7-5 percent in the long run. Also, hiring remained steady through the month, with employers adding 178,000 jobs in November, roughly in line with the average monthly gain this year.

However, continuing claims grew 11,000 to 2.02 million in the week ended December 3. Data on continuing claims are released with a one-week lag.

Meanwhile, the dollar index traded at 102.93, down -0.09 percent, while at 6:00GMT, the FxWirePro's Hourly Dollar Strength Index remained slightly bullish at 76.56 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex