- Jim O'Sullivan, chief US economist at High Frequency Economics
The U.S. Dollar picked up from a two-week low versus the single currency on Thursday, as the U.S. Labor Department released better-than-excepted data from the nation's job market. It will be difficult for the Dollar to recover from Wednesday's losses, provoked by the FOMC minutes, that showed most of the policymakers expect the benchmark interest rate to be lifted next year, while markets were expecting the similar move to be made in the foreseeable futures.
Nonetheless, the economy is sending promising signs, as the number of initial jobless claims nudged down by 32,000 to 300,000 last week, hitting the lowest since May 2007 and outpacing market's projections for 320,000 claims. The number of continuing claims fell as well, while the less-volatile four-week moving average turned lower to 316,000 from 331,000 a month ago. While payrolls disappointed markets and raised concerns about the sustainability of future growth, fewer dismissals will help to pave the way for a stronger hiring, as domestic demand for labour recovers from harsh winter, providing additional boost to the economy.
Policymakers pay close attention to the weekly report from the Labor Department as figures are the first glimpse into the economic recovery.
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