U.S. initial jobless claims came in at 209,000 for the week ending August 15, slightly below the 210,000 consensus and up from 201,000 the week before. The four-week average was 199,000, against 200,000 previously.
Continuing claims for the week ending August 8 were 1.777 million, under the 1.79 million consensus and down from 1.808 million.
The bigger surprise landed in the same 12:30 p.m. GMT batch. The Philadelphia Fed's manufacturing index registered 41.4 for August, well above the consensus of 25, which was also July's reading. The survey's business conditions index came in at 34.4 and its capital expenditures index at 30.10.
Before the releases, iFOREX described the US Dollar Index near 98.80, around three-month lows, and put the CME FedWatch Tool's probability of a Federal Reserve rate hike at the September meeting at 32.7%, down from 47% a month earlier. iFOREX attributed that shift to weaker-than-expected U.S. employment data and subdued inflation readings.
The July 28-29 FOMC minutes showed several Fed officials saw a need to raise interest rates soon unless inflation moves further toward the central bank's target.
The Treasury has expanded its bond buyback program, lifting the maximum size of each operation from $2 billion to at least $4 billion. The Wall Street Journal reported the bond market steady after that intervention, with the day's calendar also carrying the U.S. leading indicators report.
