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U.S. initial jobless claims fall significantly in early December
U.S. initial jobless claims dropped significantly in early December. For the week ended 8 December, initial jobless claims dropped to 206k from 233k. The fall of 27k is the largest since April 2015. Claims had risen in previous weeks, moving in the range of 225k-235k, which is believed to be driven by a combination of factors such as financial market stress and worries over protectionism, noted Barclays in a research report.
The job-separation rate is expected to eventually start to move to its pre-stimulus levels as the waning impulse from fiscal stimulus decelerates the rate of hiring. Nevertheless, even at around 230k, claims data continue to be in line with strong labor markets. It is to be seen whether claims at today’s level would be sustained.
State wise, a majority of the states recorded a decline in claims, led by Pennsylvania, Texas, California and Illinois. Meanwhile, continuing claims for the week ended 1 December rose to 1.661 million from 1.636 million, and the insured jobless rate held stable at 1.2 percent.
At 15:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 55.6552. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex