USD: initial jobless claims return to similar to those seen before Harvey and Irma

It was a mixed day for the dollar as it made some gains against the pound but slid against the euro. The US initial jobless claims were released and they came in much better than expected. From 258,000 the previous month, they had been expected to drop to 251,000 but actually came in an 243,000. These were levels similar to what they were before hurricanes Harvey and Irma wreaked havoc so, while the data is positive, it is nothing to get too excited about just yet.

The United States announced they would be withdrawing from Unesco because of “US concerns with mounting arrears…the need for fundamental reform in the organisation, and continuing anti-Israel bias at Unesco.” Given that Unesco’s purpose is to contribute to peace and security, the news could ramp up geopolitical tensions once more. With the US’s withdrawal from the Paris Climate Agreement earlier this year, the US appears to be increasingly distancing itself from the rest of the world. Ultimately, the decision could send ripples through the markets.

Today is a busy one for the US, as the inflation rate, retail sales and consumer sentiment are all released. It will be interesting to see how the US economy has performed of late and how dramatic an effect the recent spate of hurricanes as had.

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