Initial Jobless Claims Exceed Expectations, Gold Tests New Highs

Key Insights

• Initial Jobless Claims increased from 228,000 to 239,000.
• Continuing Jobless Claims declined from 1.82 million to 1.81 million. 
• Gold moved towards the $2040 level. 

Continuing Jobless Claims Pulled Back From Yearly Highs

On April 13, U.S. released Initial Jobless Claims report, which indicated that 239,000 Americans filed for unemployment benefits in a week. Analysts expected Initial Jobless Claims of 232,000. Continuing Jobless Claims declined from 1.82 million to 1.81 million.

FedWatch Tool indicates that there is a 68.8% probability of a 25 bps rate hike at the next Fed meeting in May. The market’s view on Fed’s future policy remained stable in recent days, and traders believe that another rate hike is inevitable.

U.S. Dollar Remains Under Pressure

U.S. Dollar Index tested new lows as traders reacted to the jobs report and PPI data. The situation in the job market remains stable, but traders believe that Fed will start cutting rates in the second half of the year, which is bearish for the American currency.

SP500 futures moved above the 4100 level in premarket trading. U.S. dollar’s pullback served as an additional positive catalyst for stocks.

Gold  tested new highs after the release of economic reports. The job market reports had minimal impact on the dynamics of gold markets. At the same time, declining PPI and Core PPI provided material support to the price of gold.

For a look at all of today’s economic events, check out our economic calendar.