FX.co ★ US Initial Claims Fall to 2-Month Low

The number of Americans filing for unemployment benefits fell by 8,000 to 208,000 in the week ending July 11th, defying expectations for an increase to 217,000 and marking the lowest level of initial claims in more than two months. Continuing claims, a key measure of ongoing unemployment, declined by 16,000 to 1,805,000 in the week ending July 4th, below forecasts of 1,820,000. These improvements suggest the labor market remains solid, with relatively few layoffs, even as it faces headwinds from slowing labor force growth. At the same time, initial claims filed by federal employees — closely watched amid the administration’s push to reduce the size of the public workforce — inched up by 20 to 424.