[ForexNews]

Initial jobless claims fell to 631k in the latest week, down from 645k in the previous week and below consensus forecasts of 640k. The four-week average of initial claims declined to 637k, down from 648k in the latest week and the recent peak of 659k in early April. Continuing claims remained on an upward trend, rising 133k to 6.271mn, while the four-week average of continuing claims climbed 131k to 6.076mn. The insured unemployment rate gained a tenth to 4.7%.

The drop in initial claims in recent weeks suggests that the pace of job losses is lessening. Market now expects a payroll decline of 575k in April, notably less than the 663k drop in March. Market looks for the unemployment rate to rise to 8.9% in April from 8.5% in March.