Better Initial Jobless Claims Fail to Spur Market Reaction
THE TAKEAWAY: US Initial Jobless Claims (JUL 12) > 334K versus 345K expected, from 358K (revised lower from 360K)> USDJPY Neutral
US Initial Jobless Claims for the week ended July 13 showed a downward revision, with the weekly print declining to 334K following a 358K (revised) advance the week prior. This downward tick beat Bloomberg median forecasts of 345K, with the headline coming in at its lowest level since the first week of May.
This downturn in Initial Claims may correlate with a strengthening US economy, as the number of individuals seeking to receive state unemployment benefits is declining. Consequently, this data may add conviction to the Federal Reserve tapering asset purchases as this is a step further in achieving their unemployment mandate.
USDJPY 1-Minute Chart: July 18, 2013
Following the release, the USDJPY remained relatively stable increasing roughly +11 pips to 100.314. Currently, the pair seems to be consolidating around the 100.300 handle as it remains in an upward trend from early this morning.
--Written by Jonathan DePaolis, DailyFX Research
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