US Unemployment to Show Resilience with Claims Release

The U.S. economy has been struggling to keep the same pace exhibited in 2014. First quarter growth has disappointed and depreciated the USD versus major pairs. The number of unemployment claims was higher in the last week at 274,000 but only slightly above the forecast of 271,000. The four-week average for claims is the lowest since the year 2000. Employment continues to be the strongest component of the American economy and has been resilient to the harsh first quarter.

The weekly release of unemployment claims and the Federal Reserve’s insistence on being data dependent will have traders eying the claims data that will be published on Thursday. Otherwise, there will be two releases of weekly data ahead of the biggest indicator in the forex market on Friday, June 5 when the nonfarm payrolls data will be released.

US employment events to watch this week:

Thursday, May 28 8:30 a.m. USD Unemployment Claims

*All times EDT

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza