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The United States is expected to report its initial jobless claims once again. Although the figure is expected to rise from 1,434 thousand last week to 1,415 thousand this week, the US dollar is still projected to fall in comparison after the Norwegian economy reported a surge in house prices in a yearly comparison. The Norges bank adjusted housing prices to increase by 0.9% between June and July, and it’s up 5% from exactly a year ago. This showed the fastest growth in three years. Cheaper mortgage rates helped boost the figure with a lower key policy rate of 0.00% thanks to changes brought by the coronavirus pandemic. Although this could mean that the figure will cause a shift in interest rates in Norway for the second half of 2020, this is no match for the sagging optimism for the US economy with surges in domestic coronavirus cases, as well as its upcoming nonfarm payroll report expected to fall drastically from 4,800K in June to 1,600K in July.
Manufacturing PMI in Norway fell below market forecasts from 48.8 in June to 43.3 in July. Meanwhile, investors expect the Bank of England to keep its benchmark interest rates down at 0.10% in its monetary policy meeting in early morning trade. UK construction is projected to rise in July from 55.3 in June to 57.0, which will render bullish for the sterling pound against the Norwegian krone. The BOE cut its rates twice this year from 0.75% since the beginning of the coronavirus economy. Nonetheless, investors should still look out for the UK’s outlook for its overall economy within the second quarter of this year, as well as the fiscal year of 2021. It looks like the GBP is still rendering its news about delays in economic recoveries, which will dampen its increase in the GBPNOK pair, but the UK currency is expected to boost near-term. The BOE’s 100 billion-euro bond-buying expansion since June is also helping buoy GBP prices.
Israel is in the middle of a second wave of infections of the novel coronavirus. Moreover, analysts are worried that the Israeli economy might not be able to reach back to pre-coronavirus levels anytime soon. In fact, local economists believe that its negative growth for 2020 will reach 5.9 to 7.2 percent by the end of this year. Markets project about 70,000 businesses in Israel to close to prevent the disease’s spread as opposed to 45,000 in an average year. Although Israel is expected to weaken against other major currencies, the US dollar is still projected to decline as long as coronavirus cases continue to rise in the country. The US hasn’t lowered its surging cases since the pandemic began, pushing its initial jobless claims up to record highs of more than a million more Americans every week. Nonfarm employment, reported earlier this week, also plummeted from 4,314 thousand to 167 thousand, which is projected to drop the greenback against ILS.
Swedish GDP fell drastically on both a yearly and a quarterly basis. From 0.1% in the first quarter of 2020, it plummeted to -8.6% during the second quarter. When compared to 0.4% from a year ago, Sweden saw an 8.2% economic decline in the same period this year. Industrial Production, on the other hand, surged to 8.8% on a monthly basis from 0.9% recorded previously. Notably, its largest single quarterly drop is expected to fare better than the United States. The US dollar is expected to continue its struggle against other major currencies as it continues to add thousands of new cases on the daily. The American economy is still projected to report more than a million Americans filing for unemployment benefits this week from 1,434 thousand to 1,415 thousand. The US ADP nonfarm employment change also fell in July against June by almost nine hundred thousand from 1,500 thousand to 167 thousand as per yesterday’s report.
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