Unemployment claims rose for the first time in nine weeks. Business restrictions on restaurants, bars and public venues may be responsible, according to FXStreet’s Analyst Joseph Trevisani. Nonetheless, markets took rising claims in stride for now as the US Dollar Index edged slightly higher after the data, trading now around the 92.30 level.
Key quotes
“Initial claims for unemployment insurance rose for the first time in nine weeks to 742,000, according to the Labor Department, as many states have imposed limits on restaurants, bars and other establishments that require in-person contact while Continuing Claims dropped to 6.372 million in the November 6 week from 6.801 million. Both claims figures are the lowest of the pandemic era.”
“For employers, the difficulty is in balancing the present of increasing business restrictions and possibly reduced consumer traffic against future improvements. Except for restaurants, bars and other business directly affected by new closures and curfews, other businesses are likely to sit tight on employees in anticipation of a better spring.”
“Markets have already voted for the vaccinated future with equities having recently set all-time records and Treasury yields near four-month highs.”
“The dollar has remained within its recent ranges against the majors. Currency markets have not treated the global surge in cases as a reason to invest in the dollar safety-trade. That is a sign that more normal markets lie ahead.”
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