US weekly jobless claims fall to 194,000, below forecasts
New US unemployment benefit applications dropped to 194,000 in the week ending October 17, below the 200,000 expected and down from the prior week's revised 200,000, the Department of Labor reported Thursday.
The four-week moving average, which smooths out weekly volatility, edged down to 197,750 from a revised 198,750 a week earlier.
Continuing claims, which track people still receiving benefits, told a different story. They climbed by 25,000 to 1.728 million for the week ending October 10, suggesting some workers are taking longer to find new jobs even as fresh layoffs stay subdued.
The US Dollar Index (DXY) gained ground after the release, trading near 101.80 and breaking a recent multi-day losing streak.
Weekly jobless claims are watched closely as one of the timeliest gauges of US labor market health. A lower-than-expected figure points to continued resilience in hiring, which can support expectations that the US Federal Reserve (Fed) will keep interest rates higher for longer.
Why it matters for markets: Tighter labor market data tends to lift the US dollar and Treasury yields by reinforcing expectations of a cautious Fed, while the rise in continuing claims offers a partial counterpoint worth watching in future reports.
Source: FXStreet