Forex News: US Initial And Continuing Claims Are Horrible; Trade Deficit Widens

Initial and Continuing Claims both soared in the current week.  Initial Claims came in at 573K versus 530e and Continuing Claims rose even more strongly to 4,429K from 4091K last week. 

This data will no doubt force Washington into paying a little more attention to jobs wherever they are.  Not being accomodative with these numbers staring them in the face would be unwise politically.

In other news the US trade balance fell to 57.19B from 56.56 Billion last month.  The Imports and Exports both showed declines.  The Exports fell from 155 billion to 151.7 billion.  The Imports also fell from $211 Billion to 208.9 billion.  A higher deficit will lead to lower GDP.   

Import Prices fell by a greater than expected -6.7% for the month and the YoY is now down 4.4%.  This was up 21.4% in July 2008.  As a result of the decline in prices the Real Trade Deficit showed a deterioration to -46.359 billion from 42.012B.  A higher deficit will lead to lower GDP.

The US dollar should be pressured.

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