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

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Miguel A. Rodriguez
Miguel A. Rodriguez
01 February 2021
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

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.