US Unemployment Claims Rose to 269,000

The number of US individuals who filed for unemployment claims for the first time last week rose to 269,000 according to the Department of Labor report released on Thursday.

The department of labor report shows jobless claims rose 9000 from previous 260,000 matching economists’ estimates of 269,000. However, filings are still moderately above 255,000 reported in July, the lowest since the 1970s.

The recent increase in job creation has tightened the labor market, hence, companies are reluctant to dismiss workers, a development policy makers are monitoring as one of the deciding factors in raising interest rate in their next meeting.

“Claims are low and people’s expectations of the labor market are improving,” Joe Carson, director of global economic research at Alliance Bernstein LP in New York, said before the report.  “Everything says that labor markets are tightening.”

US dollar rose to 1.07402 against the Euro before the report was made public and quickly pull-back after investors/traders digest the report. Though, it is expected that the Euro will sustain the new found upsurge due to ECB deposit rate cut to minus 0.3 percent and announcement of QE extension by six months with broader buying.