USA: Weekly unemployment benefit claims rise to 242,000 versus 220,000 expected

• Weekly US jobless claims increased by 17,000 in the week ending December 7.
• The DXY Dollar Index remains in positive territory above 106.50.

There were 242,000 initial claims for unemployment benefits in the week ending December 7according to weekly data released by the US Department of Labor on Thursday. This figure followed the previous week’s reading of 225,000 (revised from 224,000) and worsened the market expectation of 220,000.

Further details from the release revealed that the seasonally adjusted insured unemployment rate was 1.2% and the 4-week moving average stood at 224,250, an increase of 5,750 from the previous week’s revised average.

“The seasonally adjusted advance insured unemployment number for the week ending November 30 was 1,886,000, an increase of 15,000 from the previous week’s unrevised level of 1,871,000.” the DOL further noted in its publication.

Market reaction

The DXY Dollar Index retreated from daily highs following this data and was last seen posting modest daily gains at 106.70.