- Eric Green, head of U.S. rates and economic research at TD Securities
The number of Americans seeking new claims for jobless benefits dropped less than expected last week, but continued to point to improving labour market conditions. The Labor Department reported that initial claims for state unemployment benefits slid 2,000 to a seasonally adjusted 291,000 for the week ended November 15. The previous week's data was revised to show 3,000 more applications received than initially recorded. The four-week moving average of claims, considered a better gauge of labour market trends as it strips out week-to-week volatility, rose 1,750 to 287,500, remaining at levels consistent with strong employment growth. A separate report showed that US consumer prices were flat last month, but there is evidence that underlying inflation pressures begin to push higher. The Labor Department said falling gasoline prices, which offset increasing shelter and medical costs, had weighed on the Consumer Price Index last month. The CPI increased 1.7% in the 12 months through October, advanced by the same margin for a third consecutive month. Core CPI, which strips out volatile food and energy prices, rose 0.2% last month after climbing 0.1% in September. In the 12 months through October, the core CPI rose 1.8% after rising 1.7% in September. Price growth in the country has slowed somewhat in recent months after accelerating in the second quarter, in part as a strengthening Dollar and economic slowdown in China and Europe sap imported price pressures.
© Dukascopy Bank SA