US: Initial jobless claims rose more than estimated last week

• Initial claims for unemployment benefits rose by 249,000 from 235,000 the previous week.
• Continuing applications for unemployment benefits rose to nearly 1.88 million.

The number of US citizens filing for unemployment insurance benefits rose to 249,000 in the week ending July 27, according to the US Department of Labor (DoL) on Thursday. The figures, which reached its highest level in a yearexceeded the initial consensus (236,000) and were higher than the previous weekly increase of 235,000.

Further details of the release revealed that the seasonally adjusted insured unemployment rate was 1.2% and the 4-week moving average was 238,000, an increase of 2,500 from the previous week’s average of 235,500.

Continuing claims rose 33,000 to 1,877,000 in the week ended July 20 from 1,844,000, worse than the 1,860,000 expected. This is the highest level in five months, dating back to mid-February.

Market reaction

The Dollar Index (DXY) is under some pressure and is leaving previous highs beyond 104.40 amid a backdrop of relentless downward movement in US yields across the curve.

(This story was corrected on August 1 at 12:55 GMT to say that Initial Claims for Jobless Benefits were higher than the previous weekly increase of 235K, not lower.)