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The dollar's value has increased markedly against the euro, which was mainly caused by the publication of the U.S. Department of Labor, which showed that the number of initial claims for unemployment benefits unexpectedly fell, reaching at the same levels that occurred prior to the recession, which is consistent with other signs improvement in the labor market. According to the report, the seasonally adjusted for the week ending May 4, the number of initial claims for unemployment benefits dropped to the level of 323,000, compared to the upwardly revised figure for the previous week at the level of 327 thousand note that according to the average forecast of experts , the value of this index would grow to the level of 333 thousand, compared to 324 thousand, which was originally reported in the previous week. In addition, it was reported that on a seasonally adjusted basis the average claims for the past four weeks fell by 6,250 to 336,750 in the week ending May 4, which was the lowest level since November 2007.
Economists say that the present value is a positive sign for the labor market because fewer layoffs generally coincides with an increase in employment. However, some economists say the uncertainty surrounding U.S. fiscal policy and the global economy constrains hiring, despite the fact that employers do not want to cut staff.
Sterling exchange rate dropped significantly against the dollar, losing the all items won during the first half of the day, and moved into negative territory today.
It is worth noting that the Bank of England left and the asset purchase program, and bet on the same level: £ 375 billion and 0.5%, respectively, broadly in line with the forecast of the market. Was then published GDP forecast from NIESR for the three months to April, which was revised from +0.1% to +0.8%. However, despite the strong performance of the manufacturing sector in Britain and the inaction of the Central Bank, which is good for the pound sterling could not continue to grow, and stood in the context of the dominant risk aversion.
We also add that contributed to a sharp drop in the U.S. currency report on the number of initial claims for unemployment insurance.
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