US Initial Jobless Claims, due out later at 12:30 GMT, may be of greater interest than usual after jumping to 898,000 in the previous week. The upcoming data is for the week ending October 16, when Non-Farm Payrolls surveys are held. Nonetheless, these employment figures are losing the prediction panache, according to FXStreet’s Analyst Joseph Trevisani, and the market response is set to be muted.
“Initial Jobless Claims are predicted to drop to 860,000 in the week of October 16 following a jump to 898,000 in the prior week. Continuing Jobless Claims are projected to fall to 9.5 million in the week of October 9 from 10.018 million, which would be the lowest total since the claims began their historic rise in late March.”
“Even though the exceedingly slow improvement and occasional reversals in claims have been the major disappointment of the recovery, they have not altered the general view that the economy is getting better. Nor have they lit the crisis beacons for a new stimulus package from Congress where discussion remains mired in election politics.”
“For markets, the slow decrease and fitful jumps in claims are background, they have lost the ability to surprise or to convey pertinent information. There will be no market response. All eyes will be on Thursday evening's election confrontation in Nashville, Tennessee.”
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