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Bitcoin Edges $60k, GBPUSD Hits 2-week High & Initial Jobless Claims in the U.S. Fall to Pandemic Lows

U.S. initial jobless claims fall to pandemic lows

The benchmark S&P 500 traded higher on Wednesday, as it was reported that U.S. jobless claims fell to pandemic lows.

Data from the Labor Department highlighted that claims for unemployment benefits fell by 36,000 to 293,000 for the week that ended October 9th.

Markets had expected applications to come in at 319,000, however today’s figures were the lowest level since March 2020, during the initial peak of the pandemic.

💡 Why does initial jobless claims matter?
The Initial Jobless Claims Report gets a lot of press due to its simplicity and the basic assumption that the healthier the job market, the healthier the economy. That is, more people working means more disposable income in the economy, which leads to higher personal consumption and gross domestic product (GDP).

This comes almost a week since non-farm payrolls severely missed expectations, coming in at 194,000 vs the expected 500,000.

As of writing, the S&P 500 and Dow Jones were trading up over 1.3%.

GBPUSD hits 2-week high on BOE rate hike uncertainty

GBPUSD hit a 2-week high in today’s trading session, as markets reacted to comments from a policymaker from the BOE.

The Bank of England member Silvana Tenreyro was speaking regarding the potential for a near-term rate hike, due inflation concerns.

💡 Last week
The Bank of England’s new chief economist has warned high rates of inflation could last longer than expected, due to severe supply shortages and rising household energy bills.

In her comments Tenreyro stated that, “Typically, for short-lived effects on inflation, such as the big rises in the prices of semiconductors or energy prices, it would be self-defeating to try to respond to their direct effects”.

The comments from Tenreyro, who is seen as a dovish member of the bank, sent GBPUSD to an intraday high of 1.3734, its highest level since September 27th.

London’s FTSE 100 rallied on the news, closing 0.92% higher.

Bitcoin prices edge closer to $60,000

Prices of Bitcoin, continued to trade close to a 5-month high in today’s session, as it is expected that the SEC will shortly approve an EFT product.

The world’s largest cryptocurrency rallied to an intraday high of $58,488 on Wednesday, its highest level since May.

Bitcoin prices have climbed by as much as $13,000 so far in October, after dropping to as low as $39,000 in September.

Recent rallies in BTCUSD have come as markets expect the US Securities and Exchange Commission to approve an ETF for Bitcoin within the fortnight.

Many believe that prices could surpass its all-time high of over $65,000 with that time frame.

“Trading is very competitive, and you have to be able to handle getting your butt kicked.”

– Paul Tudor Jones

Eliman Dambell

Senior Market Analyst