U.S. Weekly Initial Jobless Claims for the week ending Feb 17 were 201k (216k est.). This was the 3rd consecutive decline and the lowest reading since January 12th. Jobs continue to remain plentiful which will likely drive further wage growth as employers seek to prevent staff defections. Y/Y employee earnings reported earlier this month were +4.5% through January, evidence of the tight labor market and wage adjustments for inflation.
The dollar is higher following the jobs data, which lifted the dollar index to a 0.05% gain after a 0.55% decline overnight. The dollar is mixed vs. the G10 in an even split of small gains and losses. U.S. Treasury yields are higher in the near tenors and lower in the long-dated tenors (15yr to 30yr), a slight flattening of the curve.
The dollar had weakened overnight following Nvidia Corps earnings which tripled in its most recent quarter. The outsized earnings fueled a shift to risk assets and away from the safety of the dollar. Global equities are universally higher, and Japan’s Nikkei Index surpassed its 34-year record high.
