Jobless claims show steady US employment picture. Initial claims 206K vs 205k estimate

AI summary

<p></p><p class="PDq2pG_selectionAnchorContainer">The latest weekly jobless claims data remain consistent with a labor market where layoffs are limited and those who lose their jobs are taking slightly longer to find new employment.</p><ul><li> Initial jobless claims: 206K versus 205K expected</li><li> Prior week: 207K, revised from 206K </li><li> Four-week average: 206K versus 207.5K previously </li><li> Continuing claims: 1.774M versus 1.780M expected</li><li> Prior week: 1.775M, revised from 1.779M </li><li> Four-week continuing-claims average: 1.779M versus 1.78075M previously </li><li> Insured unemployment rate: 1.2%, unchanged </li></ul><p>The initial claims number was nearly in line with expectations, while continuing claims came in modestly below the consensus estimate. Overall, the report suggests that layoffs remain contained and there was no meaningful deterioration in the labor market during the week.Looking at the chart of jobless claims, the weekly data is nearly in the middle of what has been the trend. The figure has been flat since May.  </p><p></p><p>The reaction in the markets is being impacted by the PPI which remains elevated and pointing more toward a hike by the Fed at the September meeting.  The EURUSD is moving to new lows despite the ECB rate hike and is moving toward the 50% midpoint of the move down from the  April high at 1.15857. An upward sloping trend line was broken at 1.1616 and that is close resistance now. THe 100 day MA at 1.1559 is a targ