Bigger-than-expected drop in the number of unemployment claims

Bigger-than-expected drop in the number of unemployment claims

Due to the pandemic, the US GDP slowed sharply in Q4 2020

The latest weekly report from the US Department of Labor showed slightly promising news regarding jobless claims.

In the week ended January 23, 847,000 filed for unemployment benefits for the first time due to the pandemic. The figures came in lower than 880,000 forecasted.

On the other hand, the gross domestic product increased 4% in the last quarter of 2020, according to the Bureau of Economic Analysis. The result was slightly below the 4.2% expected by the market. On an annualized base, the US saw a GDP decline of 3.5%, higher than the 2.5% reported in 2019. Given that the economy closed lower, economists believe that the first part of 2021 will be a challenge to rebound. But as the country will pass the COVID-19 vaccine current shortage, a robust economic recovery is expected later in the year.

The Dollar related instruments such as USA30, USA500 are set to open higher, while TECH100 is expected to open in the red.

Sources: forexfactory.com, cnbc.com, finance.yahoo.com

The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.