The U.S. initial jobless claims report was released earlier on Thursday along with the U.S. building permits report. These reports are released regularly and are crucial in determining what the U.S. economy is going to look like in the near-term future. In order to properly understand the importance of these reports, we have to know what exactly they are and how they impact the economy.
It is important to note that these reports are released to the public on their respective government websites for public viewing almost immediately after they’re released. It is highly recommended to check them out for a more detailed overview on the reports.
What Is The Initial Jobless Claim Report
The U.S. Initial Jobless Claims reveals the number of people who filed for unemployment insurance for the first time. This report is released on a weekly basis and therefore is always up to date on its statistics. It is important to understand that this report does not present data regarding everyone who filed for unemployment insurance.
It is only for the select section of people who otherwise had always been employed but have now lost their jobs for the very first time. This is an important measure of the current employment situation in the country. If the results of this report reveal an increase in unemployment insurance claims that were more than predicted, it would most likely impact the dollar negatively. The dollar would likely be facing bearish market conditions.
If the results of this report reveal a decrease in unemployment claims than what was initially expected, it would most likely impact the dollar positively. The dollar would likely be facing bullish market conditions.
Latest Initial Jobless Claim Report
The U.S. initial jobless claim report was released on Thursday for the week ending March 12th. This report revealed an unemployment insurance claim presented by 214,000 people. This is a decrease of 15,000 from the report from the previous week where 229,000 claimed unemployment insurance relief.
This comes as a pleasant surprise as analysts predicted that the number of people who would claim unemployment insurance this week would be around the 220,000 mark. The number was much less than expected, therefore revealing that the job market in the country is doing pretty well. Quite surprisingly, this result did not have much of an impact on the forex markets. It was expected that the low numbers would cause bullish market conditions for the dollar but the dollar is still struggling to keep up. The impact of the FOMC and BOE meeting is still holding fresh in everyone’s minds.
Daniel Silver, Economist at JP Morgan, revealed in a statement his thoughts on the entire situation. Silver states, “Through some of the noise in weekly figures, filings have been coming in at pretty low levels in recent weeks, suggesting that the labor market is strong.” Dante DeAntonio, Senior Economist at Moody’s, also revealed in a statement his thoughts on the entire situation. DeAntonio states, “The Russian invasion of Ukraine adds some uncertainty to the outlook as energy prices have spiked, and business and consumer sentiment has taken a hit. However, we expect firms to mostly look beyond the near-term volatility, especially given the difficult hiring environment that remains.”
What Is The Building Permits Report
The U.S. buildings permit report reveals the number of people who filed for building permits. This report is released on a monthly basis and is therefore always up to date on its numbers. This report is a very important measure of the demand for housing in the country.
With inflation eating away at our lives these days, housing has become unaffordable for many. Through this data, we will be able to find out if the housing market is back in demand or if people are still struggling to afford housing. It is unlikely that people would file for building permits if there would be no one to later buy or rent these properties to.
Therefore there’s a lot that goes behind this report and why it is a very important determining factor for several decisions. If more than expected people are filing for building permits, the dollar would find itself in more bullish market conditions. However, if the numbers are less than expected, the dollar would find itself in more bearish market conditions.
Latest Building Permits Report
The U.S. building permits report was released earlier on Thursday which revealed that the number of people who filed for building permits are 1.859M. This is a decrease from the previous 1.895M for the previous month. Analysts were predicting a much lower number, more closer to 1.850M so although this is still lower than the previous values, it is still a pleasant surprise. These numbers reveal that the housing industry in the country is struggling and people aren’t willing to build any new houses as of right now.
This comes as no surprise considering the rising inflation and fuel rates which is making life unaffordable for most people. People are more willing to hold their capital at the moment due to uncertain economic conditions instead of investing it in different places like the housing market. These results also didn’t have much of an impact on the forex markets as of right now but we may witness a delayed reaction later in the day or by tomorrow. The BOE and FOMC meeting is currently the hot subjects in the markets.
Isfar Munir, an Economist at Citi Group, has revealed his take on the situation. Munir states, “While housing demand should be negatively impacted by higher mortgage rates, housing starts should be buffered by the large number of new homes that have been sold but haven’t yet been started. These homes will have to be built at some point and will count as a housing start at that time.” Munir remains optimistic for the housing industry in the country. Although it may be facing hurdles at the moment, in the long run, it should do just fine once inflation and other economic problems are more under control.
