FX.co ★ US Initial Unemployment Claims Inch Higher

The number of Americans filing for unemployment benefits rose by 5,000 to 215,000 in the third week of May, slightly above market expectations for a 1,000 increase. At the same time, continuing jobless claims increased by 15,000 to 1,786,000 in the second week of May, broadly in line with forecasts of 1,780,000. Despite these modest upticks, both measures remain well below last year’s averages and extend the recent stretch of stability that followed declines in initial claims in prior months. This backdrop continues to signal a robust labor market and allows the Federal Reserve room to maintain a restrictive policy stance. Meanwhile, initial claims filed by federal employees—closely watched amid government shutdown–related delays in unemployment insurance processing—were little changed at 427.