U.S. Initial Unemployment Claims Drop 2012.03.02

The United States (US) Department of Labor reported Thursday individuals applying for unemployment for the first time last week (the week ending February 25th) came in at a seasonally adjusted 351,000, 2,000 lower than the previous week’s revised average of 353,000. The four week moving average, which displays a less volatile figure, calculated to 354,000, 5,500 less from the previous week. The numbers exhibit that fewer individuals are being laid off and implies some companies are increasing employment. Unemployment insurance applications have lowered steadily since early fall of last year and are currently 15.0% lower since October 2011. The insured unemployment rate amounted to 2.7% for the week ending February 18th, unchanging from the previous week. The US Federal Reserve stated Wednesday that the country’s economic growth increased at a modest to moderate pace. They cited positive expansion in factories, retail sales, employment growth and home sales, reporting that the economy performed better expected. Despite this, the number of individuals receiving unemployment moved up slightly last week.

In other US news, the Institute for Supply Management reported Thursday activity in the manufacturing sector grew in February. The purchasing manager index (PMI) listed 52.4% for the month, where any number above 50 indicates growth and any number below indicates contraction. Yet, the registry was less than January’s 54.1% figure exhibiting growth had slowed and came in lower than economists’ projections of 54.5. Most industries reported expanding business while three namely furniture, non-metallic mineral products, as well as food, beverage, and tobacco products reported contractions.

Despite the positive economic reports, the U.S. Dollar traded sideways against the Euro. The pair found support at the 200 period moving average line after declining 140 pips yesterday. If the pair breaks below 1.3300, we expect the pair to find support at 1.3200. 

Eugene Ross, Analyst

Admiral Markets

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