Areas of the U.S. economy starting to resemble pre-financial crisis period

17 Jan

Real estate market and work beyond the most optimistic expectations

Applications for financial aid from the state for those who lose their jobs reached 335,000 last week, a minimum 5 years. This is a remarkable development that could signal a strengthening U.S. labor market expansion. Part of surprise might have been due to technical issues related to the seasonal adjustments, but it’s pretty clear that if further reports will be below 340-350 thousand, we are dealing with a marked improvement. New construction reached an annualized rate of 0.95 million units, also partially explained by autonomous factors such as warmer weather. Growth was strong in all four regions and confidence is at the best level since April 2006. In fact the U.S. economy offers a more constructive, and lower chances QE program to be pushed far into the future. The consequences were immediate in markets, the dollar unable to ignore positive U.S. macroeconomic trend. Gold recorded acute fall, but began to recover later. Initial trend seems to be broken, receiving help from weaker Philly manufacturing index. But today’s figures are likely to persist for some time and can pose problems in the future for Euro and Gold.

Unemployment claimsSource: forexfactory.com

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