© Reuters.
Investing.com – US unemployment data has now been released, missing expectations and warning that a recession is imminent, and the significance of the just released data is that it comes hours before the release of US employment data on Friday.
The data issued now is consistent with the vision of those who want a weak labor market and greater unemployment to achieve a soft recession and then lower inflation, as requests for unemployment benefits rose, i.e. came higher than market expectations, and higher than the week before last. In addition, the economy achieved less than expected growth, and less than the rates recorded in the previous reading.
Although the issued data supports the dollar’s decline and gold’s rise, gold is still in a downside range, coinciding with the dollar’s slight rise.
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Unemployment and GDP data
It recorded 228,000 applications, higher than the forecast of experts, who expected 200,000. Especially since it recorded 198 thousand the week before last, but this reading has been revised to record now 246 thousand.
Thus, it rose in 4 weeks to 237.75 thousand, after it recorded the week before last 242 thousand.
The weekly unemployment indicator provides very timely data, identifies the amount of individuals who claimed unemployment insurance for the first time during the past week and traders see the unemployment rate as an indicator that gives little indication of the future performance of the economy. The two downtrends have a positive effect on the country’s currency, as working people tend to spend more money.
Other data released recently
The Challenger employment report was released moments ago, revealing a strong increase in US job cuts (layoffs) in the first quarter of 2023. Job cuts rose in March to 89.7 thousand layoffs, compared to 77.77 in the previous reading, while experts expected the number to decrease to 65.00. alpha.
Thus, the first quarter of 2023 witnessed the highest employment reduction rates since the first quarter of 2020.
Gold and the dollar now
It decreased by 0.25% at 2015 dollars an ounce.
While US gold futures fell 0.25% to $2031.
It rose by 0.1%, to record 101.64 points.
