U.S. initial jobless claims falls to 298,000 in the preceding week

U.S. initial jobless claims for the week ended August 16 showed fewer than expected Americans filed for unemployment insurance benefits, adding further to the labor market’s continuous improvement.

First-time applicants for jobless benefits dropped to 298,000 from a revised of 312,000, beating median forecast of 303,000, the Labor Department said today.

The figures released today indicate a rise in employer confidence over growth in the economy in the upcoming period.

Meanwhile, the number of people continuing to collect benefits dropped to 2.500 million in the week ended August 9, after a revised figure of 2.5549 million, also beating analyst’s median estimates of 2.520 million.

Federal Reserve policy makers look at progress in the key labor market as they continue to scale back their bond-buying program based on an improving economic outlook.

In minutes of the Federal Reserve meeting published on Wednesday, showed most officials believe the ongoing improvement in the labor market supports a move towards tightening monetary policy.

Investors will be also looking at U.S. initial jobless claims and home sales report. Today’s slate of data is more than just an appetizer leading up to Fed’s Chief Janet Yellen’s speech on Friday at an annual gathering of central bankers in Jackson Hole, Wyo.

As of 12:35 GMT, the U.S. dollar inched down against a basket of major currencies to hover around 82.25 after hitting a high of 82.40. The index started the day at 82.29.