US Initial Jobless Claims Preview: Continued slow descent unlikely to cheer USD up

Claims are forecast to drop 4% to 925,000 from 963,000 while continuing claims are set to fall to 15 million from 15.486 million. Nonetheless, improved claims are unlikely to revive the dollar’s fortunes, Joseph Trevisani, an analyst at FXStreet, reports.

Key quotes

“Initial claims are expected to drop to 925,000 in the August 14 week from 963,000 in the prior period. Continuing claims are projected to fall to 15 million on August 7 from 15.486 million”

“The negative impact of the partially revived pandemic on the US economy has been the main factor behind the month-long decline in the dollar. The trigger was the July rise in initial claim. That scenario has taken root and will not be removed until and if disproved by expansive August payrolls.”