US: Cross-the-board improvement in Jobless Claims figures – Wells Fargo

A decline in initial jobless claims for both regular and Pandemic Unemployment Assistance benefits alongside a drop in continuing claims suggests the jobs recovery has not gone into reverse, explained analysts at Wells Fargo. 

Key Quotes: 

“By a number of accounts the jobs recovery has lost momentum over the past month, but the latest jobless claims figures hint at conditions stabilizing if not improving once again. Initial claims fell to 1.19 million for the week ending August 1. Seasonal adjustment is tricky for the claims data in July due to the varying degree and timing of auto plant shutdowns, but the 4-week average on initial claims signaled some modest improvement on trend.”

“Initial claims for the Pandemic Unemployment Assistance program also posted the biggest weekly drop since late May. Continuing claims for the week ending July 25 more than reversed the prior week’s rise. In short, new layoffs and the ranks of the unemployed remain strikingly high, but today’s report alleviates concern that the jobs recovery has gone into reverse.”

“There remains a massive degree of uncertainty around estimates for payrolls tomorrow given the fast-moving and unprecedented scale of changes in the labor market in recent months.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD edges higher ahead of Fed speeches

EUR/USD is below 1.17 but above the lows. Investors are concerned about rising European COVID-19 cases. Uncertainty about US fiscal stimulus and the elections is elevated ahead of the first presidential debate and US consumer confidence.


GBP/USD advances toward 1.29 on Brexit hopes

GBP/USD is moving up towards 1.29 as EU and UK negotiators are reportedly making progress. Concerns about new COVID-19 restrictions are weighing on the pound. 


Gold consolidates in a range around $1880 region

Gold was seen oscillating in a range through the early European session on Tuesday. A softer USD was seen extending some support to the dollar-denominated commodity. The upside seems limited ahead of the first US presidential debate later this Tuesday.

Gold News

Forex Today: Dollar declines on hopes for a US fiscal deal, ahead of presidential debate

Stock markets remain cautiously optimistic and the dollar is on the back foot, extending the reversal from last week's moves. Investors are eyeing a slew of Fed speeches, fresh hopes related to Brexit, and the first presidential debate.

Read more

WTI slips below $40.50 amid US dollar recovery, API data eyed

WTI refreshed the intraday low after reversing from $40.79. US dollar regains upside momentum amid hopes of further stimulus. Challenges to the US-China trade deal add downside pressure on oil prices. API data, USD moves become the key amid a light calendar.

Oil News