Decrease in Unit Labor Costs Accompanies Enhanced Productivity.

• The number of initial jobless claims increased from 212,000 to 217,000.

• The number of continuing jobless claims grew from 1.78 million to 1.82 million.

• In the third quarter, there was a 0.8% decline in unit labor costs.

On November 2, the U.S. published the Initial Jobless Claims report, showing that 217,000 individuals in the country filed for unemployment benefits within a week. Analysts had anticipated an Initial Jobless Claims figure of 210,000.

Continuing Jobless Claims rose from 1.78 million to 1.82 million, differing from the analysts' consensus of 1.8 million.

Significantly, there was a 0.8% decrease in Unit Labour Costs in the third quarter, contrasting with the anticipated growth of 0.7% by analysts. Non-Farm Productivity also increased by 4.7%, surpassing the analyst consensus of 4.1%.

Following the release of these reports, the U.S. Dollar Index tested session lows. Traders are closely considering Powell’s statements and speculating that the Fed will refrain from further rate hikes. Consequently, Treasury yields are decreasing, with the yield of 10-year Treasuries dropping towards the 4.65% level. The declining yields are exerting additional pressure on the U.S. currency.

Gold approached the $1990 level, supported by a weaker dollar and lower Treasury yields. Furthermore, the demand for safe-haven assets is bolstering the gold market as traders monitor developments in the Middle East.

In premarket trading, SP500 futures edged towards the 4280 level. Market sentiment is optimistic as traders anticipate a less hawkish stance from the Fed.