FX.co ★ US Initial Jobless Claims Fall to 3-Month Low

In the second week of July, initial jobless claims in the United States fell by 7,000 from the previous week, reaching 221,000, which was significantly below market predictions of an increase by 8,000 to 235,000. This figure represented the lowest weekly tally of new claims since April. Concurrently, continuing claims remained relatively stable at 1,956,000, defying market expectations of a rise to 1,970,000, and staying below the 2021 peaks observed in June. These outcomes underscore a historically robust labor market, consistent with the Federal Reserve's observations, while also reinforcing the perception that the hiring rate has decelerated since the year's beginning. Notably, the number of initial claims filed by federal government employees—scrutinized after recent dismissals by the Department of Government Efficiency (DOGE)—increased by 158 to reach 596, marking the highest level in seven weeks.