Markets Brace for Powell + Jobless Claims in Focus
Weekly jobless claims came in at 235K, up 11K from last week and a bit above expectations. That shows the labor market is softening at the edges. Continuing claims also ticked higher, now at the highest level since late 2021, which hints people are staying unemployed a bit longer.
Why it matters:
Powell’s Jackson Hole speech was already expected to be cautious and data-driven. With these labor numbers, traders may tilt even more toward expecting cuts, especially if Powell acknowledges the cooling jobs picture.
Market snapshot:
- EUR/USD: Has room to climb if dollar stays heavy on weak labor signals
- Gold: Still well-supported if softer jobs data boosts cut bets
- DXY: Under pressure unless Powell brushes off the slowdown
- Yields: Short-end could ease if the Fed leans dovish