The figure related to initial jobless claims is released in the United States almost every week. It contains the list of peoples that is looking forward to getting the benefit from the government. This figure is closely monitored by the experts in the financial market as it gives them a direction to where the economy is going. When there are higher claims, it means that the economy is not in a good position.
The movement of an economy directly leaves its impact on the national currency. Forex trader always keeps an eye on the claims, and then they use this data while analyzing a currency that can be used for their investment. Although the data changes from day to day, but traders usually use monthly data to be able to reach at a better conclusion.
In the U.S., if a person is being unemployed for more than 26 weeks, then they can qualify for the additional benefits from the federal government. In this case, if the number of claims is reduced, then it would not present the actual figure of unemployed people throughout the country.
The jobless claims’ data doesn’t include the figure of the total number of unemployed people. Hence, the financial markets have to look at a pair of data like: extended claims and the jobless claims. The extended claims are those one that are actually one week behind the continuous jobless claims. Hence, one can’t say its 100% accurate data; still, it gives a realistic picture that can be used for the analysis.
Fundamental analysis is what drives out the financial market, and it can be influenced by the day traders and the swing traders. The main job what traders do is that they keep their focus on the report’s comparison from various sources rather than just relying on the official source. For example, a trader can assume that it’s important to use those figures that were a week old as it can provide much better results. In reality, the market perception can actually bring more changes than the actual data reports.