By TraderVox.com
Jobless claims unexpectedly climbed to 386,000 last week according to figures released by Labor Department today in Washington. The living cost dropped by 0.3 percent last month with the price of gasoline decreasing by most in three years according to report. These reports have added to speculations that Fed will take more action to spur growth.
The Labor Department report showed that unemployment rate is at 8 percent where it has been since 2009. However, cheaper costs have provided relief for most American as they experience slowing job and wage gains which has resulted to low consumer spending. According to Kevin Logan, who is the Chief IS Economist in New York HSBC Securities USA Inc, said the report will keep the Fed focused on employment and growth outlook as they meet next week. Apart from Fed decision next week, investors are also waiting for Greece election result which is expected to determine the future of the nation in the single currency bloc.
According to Bricklin Dwyer who is an economist at BNP Paribas, the disappointing report from the Labor Department show lack of traction in the labor market hence increasing the need for Fed to do more. The report also indicated that the cost of energy decreased by 4.3 percent from the previous month as gasoline dropped by 6.8 percent, which is the biggest drop since December 2008. With such reports coming from the US data, and pro-stimulus sentiments from Fed Vice Chairman Janet Yellen who signaled scope for more easing, speculation Fed mare add stimulus has increased.
Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management.
Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
Follow us on twitter: www.twitter.com/tradervox