US Unemployment Data Contrary to Expectations: Impact on Gold and Dollar Movement

Investing.com – The US weekly jobless claims data is now out, which should provide more clues about the Fed’s next monetary policy moves as well as the strength of the labor market.

The data this time came in line with the vision of the Federal Reserve, which desires a weak labor market and greater unemployment to achieve a soft recession and then lower inflation, as requests for unemployment benefits rose, that is, it came higher than market expectations, and higher than the week before last, which indicates that the labor market He gets weaker. Which supports the Fed’s calmness in its monetary policy in the coming period.

Immediately after the release of the data, it consolidated its gains, while the dollar continued its downward trend.

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Unemployment data

It recorded 261,000 applications, higher than the forecast of experts, who expected 235,000. Especially since it recorded 232 thousand the week before last, but this reading has been revised to record now 233 thousand.

Thus, it rose in 4 weeks to 237.25 thousand, after it recorded 229.50 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.

Gold and the dollar now

It rose by 0.55% to $1,969 an ounce.

While spot contracts rose by 0.75% to 1954 dollars an ounce.

On the other hand, it fell by 0.5% to 103,550 points.

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