The number of Americans filing for unemployment benefits increased slightly more than expected last week, though the four week average dropped 4,000 to 241,000, weakest level since 1973, official figures revealed on Thursday. Last week's results were driven by growing economy and tight labor market, which is likely to prompt companies to retain experienced workers, supporting wage growth. According to the US Department of Labor, national jobless claims rose 6,000 to 244,000 during the week ended February 17 from the preceding week's upwardly revised 238,000. Meanwhile, economists anticipated an acceleration to 242,000 during the reported period. Filings have been holding below 300,000 for 103 straight weeks, showing healthy signs of the US job market.
In the meantime, continuing claims fell 17,000 to 2.06 million during the week ended February 11, while their four-week moving average dropped 10,750. Overall, the Federal Reserve is widely expected to increase interest rates fairly soon, with labor market and inflation data set to reveal better performance. The last time the Fed raised its benchmark overnight rate was in December last year, when the rate was increased from 0.5% to 0.75%.
Upcoming events: Several important data releases in US
The fundamental events in the US today consist of several important data releases and a speech by FOMC member Kaplan at 16:00 GMT that might hint at new plans for changes in the US monetary policy. Today, at 13:30 GMT, the US Durable Goods Orders and Core Durable Goods orders, which will reveal the amount of orders for the products with life expectancy higher than 3 years, will be released. Another data release scheduled for 15:00 GMT, US Pending Home Sales, might affect the financial markets. From these data releases, the US Durable Goods data release is scheduled to be covered by the Dukascopy research team on the live webinar.
Gold meets resistance at 1,260 mark
Daily chart: During the last trading session the yellow metal stopped the jump, which was the result of a breakout out of a triangle pattern. The surge stopped at the 1,260 level, where the 200-day SMA was and still is located at. As a result with a new week a decline has begun, and the bullion's price is set to decline to the 1,248.96 level, where the 50.00% Fibonacci retracement level is located at. In addition, the Fibo is also supported by the newly calculated weekly PP, which is located at the 1,247.55 level.Traders still bullish on bullion
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of Gold being around 1,250 in May
Traders who were asked regarding their longer-term views on gold between January 27 and February 27 expect, on average, to see the metal near 1,250 in May. Generally, 64% (+1%) of participants believe the price will be above 1,250 in ninety days. Alongside, 27% (-1%) of those surveyed reckon the currencies will trade in the range between 1,000 and 1,200 over the next three months.