U.S. Initial Jobless Claims: Impact on Indian Share Market
U.S. Department of Labour issued Initial Jobless Claim data on a weekly basis. It indicates the number of people who applied for unemployment insurance for the first time in the past week.
Financial Experts watch the number closely because it shows the condition of the US economy.
A higher than expected reading should be taken as negative or bearish for the USD, while a lower than expected reading should be taken as positive or bullish for the USD.
Higher than expected jobless claim suggest that the economy is weakening while the lower than expected initial jobless claim tells that the economy is strengthening.
Jobless claims typically rise before the economy enters a recession and decline before the economy starts to recover.
It shows a major impact on the Commodity Market but one can also see it’s a slight impact on Equity and Forex market
Indicators That Impact India Stock Market
Effect of U.S. Initial Jobless Claim data on Commodity Market (Gold)
Here data is lower than expected reading and just after the release of data Gold formed a big negative candle
In the above chart, you can clearly see that U.S. Initial Jobless Claim data on 10th May 2018 was positive as it was lower than expected reading.
U.S. Initial Jobless Claim on 10th May 2018 is 211K which was lower than forecast (219K) and same as previous (211K). The data implied that the economy is strengthening and this is taken as positive or bullish for the USD.
As we know that Commodity market (Gold, Silver, etc.) react inversely to the USD. So, in the above chart, you can clearly see that just after the data release gold formed a big negative candle.
Note: The impact of U.S. Initial Jobless Claim data on Commodity is for a very short period of time.
Here data is higher than expected reading and just after the release of data Gold formed a massive green candle
In the above chart, you can clearly see that U.S. Initial Jobless Claim data on 24th May 2018 is negative as it is higher than expected reading.
U.S. Initial Jobless Claim on 24th May 2018 is 234K which was higher than forecast (220K) and previously (223K). The data implied that the economy is weakening and this is taken as negative or bearish for the USD.
As we know that Commodity market (Gold, Silver, etc.) react inversely to the USD. So, in the above chart, you can clearly see that just after the data release gold formed a massive green candle.
Note: The impact of U.S. Initial Jobless Claim data on Commodity is for a very short period of time.