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Investing.com – The US weekly jobless claims and durable goods orders are now out, which should provide more clues about the Fed’s next monetary policy moves, as well as the strength of the labor market.
This time, the data was inconsistent with the Fed’s vision, which desires a labor market, a weak economy, and greater unemployment to achieve a soft recession and then lower inflation, as requests for unemployment benefits decreased and requests for basic durable goods increased, which indicates that the labor market and the economy are getting stronger. This motivates the Fed to continue its tight monetary policy in the coming period.
Immediately after the issuance of the data, it turned to losses on the one hand, while reversing its trend towards upwards on the other hand.
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Unemployment data
It registered 230,000 applications, while expectations were that 240,000 applications would be registered. However, it had recorded 239 thousand the week before last, but this reading was revised to 240 thousand.
Thus, it recorded 236.75 thousand in 4 weeks, after it recorded 234.50 thousand the week before last.
The weekly unemployment indicator provides very timely data, identifies the amount of individuals who claimed unemployment insurance for the first time during the past week and traders see the unemployment rate as an indicator that gives little indication of the future performance of the economy. The two downtrends have a positive effect on the country’s currency, as working people tend to spend more money.
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Durable goods data
It recorded a monthly increase of 0.5% in July, while expectations were for 0.2%, while the previous reading recorded 0.2%.
Gold and the dollar now
It is now falling by 0.42% to $1940 an ounce.
While spot contracts for gold fell by 0.14% to $ 1912 an ounce.
On the other hand, the dollar index rose 0.4% to 103,747 points.
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2023-08-24 12:33:00
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