Breaking: US Initial Jobless Claims rose to 6.648 million, new record high

There were 6,648,000 Initial Claims for unemployment benefits in the US during the week ending March 28, the data published by the US Department of Labor (DOL) revealed on Thursday. This reading followed last week's print of 3,307,000 (revised from 3,283,000) and came in much worse than the market expectation of 3,500,000.

"The 4-week moving average was 2,612,000, an increase of 1,607,750 from the previous week's revised average. The previous week's average was revised up by 6,000 from 998,250 to 1,004,250," the DOL noted in its publication.

Additional takeaways

"The advance number for seasonally adjusted insured unemployment during the week ending March 21 was 3,029,000, an increase of 1,245,000 from the previous week's revised level."

"This is the highest level for insured unemployment since July 6, 2013 when it was 3,079,000."

"The 4-week moving average was 2,053,500, an increase of 327,250 from the previous week's revised average."

Market reaction

With the initial market reaction, the US Dollar Index shot higher and was last seen adding 0.3% on the day at 99.77. US stock index futures pulled away from session highs after the data but cling to daily gains. The S&P 500 futures were last seen adding around 1% on the day. 

Meanwhile, the 10-year US Treasury bond yield erased its daily gains and was down 1.2% at 0.576% to reflect the intensifying risk-aversion.

Related articles

Jobless Claims Quick Analysis: At 6.648 million, this horror is here to stay, dollar implications.

Catastrophic data – no superlative is exaggerated for these horrendous weekly jobless claims figures. The number of claims doubled in comparison to the previous week, which already a historic record.

S&P 500 Price Analysis: US stocks on the back foot amidst worst US jobless claims in history.

The S&P 500 remains under pressure below the 2515 resistance as the US jobless claims hit a new record high at 6.648 million painting a gloomy picture for the economy. In this context, the index could decline further towards the 2400 and 2300 support levels in the medium term while resistance should emerge near 2515 and 2600 levels. 

USD/JPY flirting with daily lows, around 107.00 mark post-US weekly jobless claims.

The USD/JPY pair edged lower during the early North-American session and moved to the lower end of its daily trading range post-US macro data.

EUR/USD Forecast: Bears lead, despite awful US employment data.

Financial markets are in better shape this Thursday, although optimism is nowhere to be found. The American dollar trades marginally higher against most major rivals, except the Pound, which remains resilient to the dollar’s strength.

US Initial Jobless Claims: Devastating report – RBC.

New unemployment insurance claims skyrocketed to 6.65 million last week while current unemployment rate nearing 10%, 2009's high, Josh Nye from the Royal Bank of Canada reports.

 

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