US: Surprised drop in continuing claims intensified the greenback retracement

Initial Claims added 2.1 million, the lowest in 10 weeks while Continuing Claims fell 3.86 million in the previous week. The US dollar is losing ground as risk-premium abates, Joseph Trevisani, an analyst at FXStreet, reports.

Key quotes

“Filings for first time jobless benefits dropped to 2.1 million last week, the lowest number of new claimants since the pandemic crashed into the American economy in late March.”

“Continuing Claims, the number of individuals receiving benefits for at least two weeks, fell 3.86 million to 21.052 million, for the first decrease since claims began their rise on March 26.

“The dollar had little initial reaction to the jobless figures. But in the context of the general retreat of risk-aversion pricing, the lower initial claims number and the surprise drop in continuing claims reinforced the pullback in the US currency. The greenback closed lower against all of the majors except the Canadian dollar where it gained 11 points, having lost more than two-and-a-half big figures this week.”