Definition
Is and index reported on a weekly basis which track the change in the number of people filing for unemployment benefits in the previous week. Release usually every Thursday at 13:30 GMT and considered a gauge to the health of the labor market; yet mostly the four-week average is the figure looked at the most especially when projecting the renounced labor report in the US, the Nonfarm Payrolls.
General Effect
Occasionally moves market, timely. Considered a good gauge of the condition of the labor market and good indicator to the tone of the employment report.
the series are volatile and subject to revisions. The four-week average is used to gauge the underlying trend in claims.
The effect of the rising number is negative for both the dollar and the indices.
Best Case As long as the reading comes in lower or inline with expectations is a bright sign in the job market as this therefore means that as less employees are filing for benefits means that there is money flowing in the economy which helps growth as the US depends on spending heavily.
Worst Case When the reading comes higher than expectations is not a good sign for the economy as this undermines growth prospects as a result of lack of money in consumers' hands which therefore leads to less money in the nation leading to sluggish growth like we are witnessing currently.
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