Traders Find New Indicators! Latest Unemployment Benefit Claims Serve as a Guide

<p>&nbsp;New jobless claims in the United States fell last week, although labor market conditions remained tight despite aggressive interest rate hikes by the Federal Reserve.</p><p><br /></p><p>Initial claims for state jobless benefits filed by states fell by 10,000 to a seasonally adjusted 230,000 for the week ended Aug. 19, according to Labor Department data on Thursday. In the previous week it was updated slightly up by 1,000. Economists polled by Reuters had forecast 240,000 applications for the latest week.</p><p><br /></p><p><br /></p><p>Labor market data continues to beat expectations despite aggressive actions by the Federal Reserve since March 2022, when employers are keeping workers after struggling to find workers during the COVID-19 pandemic. A strengthening labor market and a steady decline in inflation are raising optimism that the economy can avoid a recessionary scenario.</p><p><br /></p><p>The number of people receiving benefits after one week of the start of aid, a proxy for hiring, rose by 9,000 to 1.702 million during the week ended Aug. 12, the claims report showed. This continued benefit consideration remains low by historical standards, indicating that some laid-off workers are experiencing short periods of unemployment.</p><p><br /></p><p>The US dollar index, which measures the greenback currency, continues to strengthen against six major currencies by 0.44% and is trading at a trading level of 103.782</p>