Unemployment data makes an rate increase in March more likely

Unemployment data makes an rate increase in March more likely

The US unit claims rose last week after three declining weeks in a row. Unemployment is still at a historical low, but is a key indicator that could indicate that the Federal Reserve will take restrictive measures.

request for unemployment support rose to the season -adjusted 248,000 last week, compared to 225,000 in the previous week Data from the employment office. The ongoing proposals that provide information about the number of citizens who receive state unemployment unemployment supported from 1.62 million a week earlier.

The largely positive report comes after the chairman of the US Federal Reserve, Jerome Powell, pointed out that the maximum employment is a key destination that has to be achieved before the Fed increases interest rates or reduces the purchases of assets.

"In their discussion about the current economic conditions, the participants found that the indicators of economic activity and employment have further improved", Read Protocol from the FED session in January.

While the employment situation may improve, inflation continues to increase with the fastest rate for 40 years, and leading analysts assume that interest rate increases will come in March

"The central bank will initiate its tightening cycle next month, and a number of consecutive interest rate increases will probably follow," wrote Craig Erlam, Senior Market Analyst at Oanda, on Thursday in a message.

"It is not yet clear whether you will start with an increase of 50 basis points and will depend on the data in the coming weeks, but there does not seem to be a consensus for it, even though the markets praise that it happens."

Fed-Fonds-Futures show a 69.2 % probability At their session from 15th to 16th March, which is still 19 trading days away, will raise 25 to 50 basis points.

The view of higher interest rates has stimulated risk systems, including Bitcoin and other cryptocurrencies, in the past few months. Bitcoin fell by about 2 %on Thursday one hour after the publication of the job report, but the analysts remain optimistic.

"[Bitcoin] has shown real resilience in the past few weeks, but it is difficult to create the necessary momentum to take the next step," said Erlam. "The uncertainty in the markets probably does not help, although it has not held them back lately, a breakthrough could be a very bullish development for Bitcoin."

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The contribution JObless Data Makes March Rate Hike Morely is not a financial advice.