Dollar Falls as Unemployment Claims Jump Another 4.4-Million
Thursday’s trading session produced a broadly weaker US dollar after more shocking unemployment data spooked markets. The number of American citizens registering for initial jobless benefit leapt another 4.4-million in the last week. This brings the total to an eye-watering 26.5-million in the last 5-weeks!
The buck fell against the majority of its counterparts bar the euro and Swiss franc. The drop in the value of the single currency can be attributed to the much softer than expected eurozone flash PMIs, especially the services readings. Domestically, the UK numbers were not pretty, both April manufacturing and services prints hit all-time lows, much lower than previous records during the 2008 financial crisis. Despite this, the pound managed to hold its own, gaining against the buck and euro.
As another turbulent week draws to a close, the final trading day still has a lot to offer. Several important releases will feature today which could ensure markets still have more volatility to endure. UK retail sales will be released this morning after being postponed from yesterday. Additionally, the German IFO business sentiment is scheduled for 09.00. This is followed by the afternoon session which sees US durable goods orders as well as consumer confidence numbers. Many will be keeping a close eye on the US dollar to observe whether it will concede any more ground into the weekly close.
Have a great weekend.
Written by Viv Savani. 8:49am, April 24th 2020
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.