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.


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Posted By laraparker : 08 October, 2020
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