14th consecutive decline in US claims

<div>
<div>
<aside>
<div>
<div>
<div>
<div>
<p>After it pared <strong>declines</strong> as a mostly risk-on session in Asia, led by a continued rally in Chinese stocks, gave way to a less certain session in European markets, <strong>Dollar </strong>was little changed after the slightly higher than consensus rise in jobless claims. <strong>EURUSD</strong> turned slightly lower to 1.1335 from 1.1340, while <strong>USDJPY</strong> was pretty much unchanged, bouncing between 107.17-107.40.</p>
<p><strong>US initial jobless claims dropped -99k to 1,314k in the week ended July 4</strong>, close to forecasts. The prior report for June 27 was revised to show a -69k decline to 1,413k (was 1,427k). This is the 14th week of decline from the record 6,867k from March 27. It brings the 4-week moving average to 1,437.25k from 1,500.25k (was 1,503.75k). Continuing claims declined -698k to 18,062k in the week ended June 27 versus 18,760k (was 19,290k) in the June 20 week. And continuing claims are down from a May 9 high of 24,912k. The insured unemployment rate fell to 12.4% from 12.9% (was 13.2%).</p>
</div>
<p><img class="aligncenter" src="http://www.actioneconomics.com/upload/US-Econ-Data/Claims-01_400x250.gif" /></p>
<p><span role="link">Today</span>‘s improvement was encouraging, though claims declines overall continue to fall short of the <span role="link">rebound we’re seeing</span> in <span role="link">nonfarm payrolls</span>, as well as the increases into the summer for most available supply and demand measures for the economy, though with some restraint in gains recently from pull-backs in re-openings.</p>
<div>
<p><a href="https://analysis.hotforex.com/wp-content/uploads/2020/07/2020-07-09_16-12-11.png"><img class="alignnone size-large wp-image-148752" src="https://analysis.hotforex.com/wp-content/uploads/2020/07/2020-07-09_16-12-11-1024×580.png" alt="" width="696" height="394" srcset="/wp-content/uploads/2020/07/2020-07-09_16-12-11-1024×580.png 1024w, /wp-content/uploads/2020/07/2020-07-09_16-12-11-300×170.png 300w, /wp-content/uploads/2020/07/2020-07-09_16-12-11-768×435.png 768w, /wp-content/uploads/2020/07/2020-07-09_16-12-11-1536×871.png 1536w, /wp-content/uploads/2020/07/2020-07-09_16-12-11-696×394.png 696w, /wp-content/uploads/2020/07/2020-07-09_16-12-11-1068×605.png 1068w, /wp-content/uploads/2020/07/2020-07-09_16-12-11-741×420.png 741w, /wp-content/uploads/2020/07/2020-07-09_16-12-11.png 1588w" sizes="(max-width: 696px) 100vw, 696px" /></a></p>
</div>
<p><strong>Treasury yields are inching slightly lower</strong>, even as equity futures rally. There was no real impact from the 14th consecutive decline in initial jobless claims. The 10-year yield is 1.8 bps richer at 0.646%, while the 2-year has dipped to 0.157%. Equity futures are now in the green, albeit barely for the <strong>USA30,</strong> while the <strong>USA100</strong> is 0.6% firmer and the <strong>USA500</strong> is up 0.2%.</p>
<p>Caution over the coronavirus, with another record increase in US cases, and concerns over the reopening process are dictating a lot of the trade.</p>
<div>
<p><strong>Click </strong><a href="https://www.hotforex.com/en/trading-tools/economic-calendar.html"><strong>here</strong></a><strong> to access the Economic Calendar</strong></p>
</div>
</div>
</div>
</div>
</aside>
</div>
</div>
<p><b>Andria Pichidi</b></p>
<p><strong>Market Analyst</strong></p>
<p><strong>Disclaimer: </strong>This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.</p>