Morning Forex Fundamental: USD

Morning Forex Fundamental: USD

'The conditions now prevailing in the job market represent an enormous waste of human and economic potential' - Fed Chairman Ben S. Bernanke

U.S. jobless claims fell to nine-week low

Impact High

New applications for the unemployment benefits in the world's biggest economy fell more than expected last week, adding to evidence that the labour market is on the path of recovery. The Labor Department said that the number of people who applied for jobless benefits fell by 29,000 to 343,000 in the week ended December 8, down from 372,000 a week earlier, reaching the lowest level since October 9. The four-week moving average was significantly lower, falling 27,000 to 381,500. During the last four weeks, the unemployment claims tumbled 108,000, indicating companies are comfortable with current staffing levels. On Wednesday, the Fed's Chairman Ben S. Bernanke said that the interest rates will remain low until the overall jobless rate falls below 6.5%. With the 146,000 increase in payrolls, unemployment rate falling to 7.7% and a significant drop in jobless claims, the Fed may change its monetary policy sooner than may be thought.

'The conditions now prevailing in the job market represent an enormous waste of human and economic potential,' Fed Chairman Ben S. Bernanke said in a news conference following the announcement. The Fed plans to 'maintain accommodation as long as needed to promote a stronger economic recovery in the context of price stability,' he said.

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