Dollar continues to slide ahead of US unemployment claims

The US dollar fell against a basket of major currencies on Thursday, to deepen losses for the second straight day, on slowing amid improved market sentiment and ahead of the US weekly unemployment claims data.


The dollar index fell more than 0.1% to 93.50 points, after it opened at 93.61, and hit an intraday high at 93.65.


The greenback fell 0.3% its second daily loss in 3 days, as demand slowed in favor of other major currencies.


The drop in the US dollar came as demand slowed amid strong sentiment in global markets, while investors focused on buying high-yield assets.


Sentiment has improved again after the approval of some fiscal stimulus in the US to counter the economic damage caused by the coronavirus pandemic, following President Donald Trump's postponement of the new aid package talks.


The Federal Reserve's minutes of its September 15-19 meeting showed that the majority of voting members saw that the US economy recovery is faster than expected during the past few months compared to the second quarter.


However, some Fed members see that the lack of more fiscal support from the US Congress means further difficulties for the US economy.


Investors are anticipating key economic data releases today on the US unemployment claims, which delivers insight on the the US jobs market recovery path after the recent spike in coronavirus infections.


At 12:30 GMT, the US unemployment claims reading is expected to reach 0.820 million in the week ending October 3 vs. 0.837 million in the previous week.

Attached Files:

Posted By laraparker : 08 October, 2020
Related Article

Euro rose in European trade against dollar off two-week lows while still heading for a weekly loss as investors shun riskier currencies.    EUR/USD rose 0.1% to 1.1720, after closing down 0.3% yesterday, marking two-week lows at 1.1688.   The common currency is now over 0.9% down this week against dollar, on track for the first weekly loss in three, and the second worst in the last month.    Haven demand rose on dollar again as hopes for US stimulus faded before elections, while a second coronavirus wave takes hold in Europe and the US.    US Treasury Secretary Steven Mnuchin almost ruled out expanding stimulus before elections due to disagreement with Democrats on priorities.    Governments in Europe have taken new restrictions to arrest the spread of Covid, threatening recent economic recovery.

Euro rose in European trade for another session against dollar to two-week highs as sentiment improves on hopes for more stimulus by US government, and after President Donald Trump exited hospital after his Covid 19 treatment.    EUR/USD rose 0.2% to 1.1800, the highest since September 21, after closing up 0.5% yesterday as risk appetite improves.    The dollar index lost 0.1% on Tuesday on track for another day of losses, marking two-week lows at 93.34.    The decline comes as haven demand on the greenback slows down while hopes for US stimulus increase.    US President Donald Trump exited the Walter Reed military hospital yesterday and returned to the White House after his Covid 19 treatment.    The president's doctor cautioned he hasn't completely recovered yet, with Trump announcing plans to return to the election trail immediately.    Otherwise, Trump called on both political parties to work together to finish up the stimulus plan, days after the House passed a $2.2 trillion financial rescue bill.

USD/JPY tilted higher in Asian trade off September 23 lows amid a lack of data today from Japan and ahead of US data, while investors assess developments on President Donald Trump's health and US stimulus plans.   As of 06:53 GMT, USD/JPY rose 0.22% to 105.57, with an intraday high at 105.61.    From the US, the services PMI is expected at 54.6 in September, down from 55 in August.    The medical team handling Trump's case said his condition is improving and he might exit the hospital on Monday.    Trump's announcement of a Covid 19 infection shocked the markets, with Trump now transferred to a medical center to monitor his condition.    Otherwise, Trump called on both political parties to work together to finish up the stimulus plan, days after the House passed a $2.2 trillion financial rescue bill.

Post your comment