The number of Americans filling for unemployment benefits was 1.48 million in the week ended June 20th, after 1.508 million in the previous period, bringing total claims to near 47 million since March 21st when the coronavirus pandemic started in the US. Today’s reading came in above market expectations of 1.3 million. This might be a sign that the labour market recovery may take much more time than initially expected.
Continuing claims, which lags initial jobless claims data by one week, reach 19.5 million, while analysts expected a drop to 19.96 million. However, some market participants believe the effects of the coronavirus pandemic on the US labor market is not fully captured by the claims reports as neither PUA (Pandemic Unemployment Assistance program) nor PEUC (Pandemic Emergency Unemployment Compensation) are included in the initial claims and continuing claims figures. Also, unemployment numbers might rose when the Paycheck Protection Program, a loan that helps small businesses to keep their workers on the payroll will come to an end.
EURUSD - publication of today's report did not have a significant impact on the most popular currency pair. EUR/USD is drifting towards 1.1167 support level. Source: xStation5
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