Fewer Americans filled for unemployment insurance last week as jobless claims fell 12k to 334k in the week that ended on June 8th. With fewer individuals being released by companies likely means that employers have cut back their staffing as much as possible in order to work with a leaner workforce.
Guy Berger, RBS Securities economist said that “the economy is resilient” and “with the economy not growing very fast, we can only generate a fairly moderate of payroll growth.” The lack of current growth is been tied to the lack of government spending and higher payroll taxes.
Unfortunately, the number of continuing unemployed to receive unemployment insurance increased 2k to 2.97 million in the week that ended on June 1st. Note: this number does not include the number of individuals receiving extended benefits under the federal program. Those who have used the traditional assistance and now collecting emergency benefits decreased roughly 57k to 1.7 million in the week ended on May 25.
The U.S indexes remained lower on the news, but edged higher into positive territory. The euro-dollar took a hit after breaking 1.3325, and broke 1.33 support, currently 1.3292. EURUSD has a tough road a head of itself as heavy resistance lays ahead around 1.335 and 1.35. As the euro breaks former support of 1.33, failure for the euro-dollar to close above this level could mean further downside to 1.31.
Yen up on the day and creating massive amounts of volatility in pairs; USDJPY at 94.64 down 1.36 or -1.42 percent.