Let’s track the changes in the market. On Thursday, the dollar consolidated its gains against other currencies. This was before the release of the weekly data on United States unemployment. It will most probably provide more evidence of the world’s biggest economy hurtling into a deep recession.
Thus, against a basket of major currencies, the dollar rose 0.2% to 99.808, a one-week high. This was after the termination of a four-day losing streak on the previous day because equity market gains fizzled.
Meanwhile, there was some improvement in risk sentiment and oil prices. Thus, the stock markets helped to temper the dollar’s gains. Economists were considering the extent of the damage to the world economy caused by weeks of enforced lockdowns.
Moreover, lifting the total filings during the crisis above 20 million, Economists forecast United States weekly jobless claims of 5.1 million.
Dollar and Others
On Wednesday, there was more dire United States retail and factory data, along with a nosedive in oil prices to 18-year lows. Thus, the dollar strengthened across the board.
Investors scrambled for the safety of the world’s reserve currency. Thus, the dollar has gained broadly during the crisis. Nevertheless, it was down from the late-March highs. This was because the United States Federal reserve unleashed a stream of measures for supporting the economy.
Andrew Wilson is chairman of global fixed income at Goldman Sachs Asset Management. He said that in the short term, the dollar would most probably remain firm. This is because of its status of safe-haven. Moreover, this is inevitable because the economic situation remains uncertain.
Wilson adds that they expect the dollar to underperform in the medium terms as economies are starting to recover.
The United States President Donald Trump will most probably announce guidelines. These will be made at a press conference later on Thursday. The instructions are about re-opening the country’s economy.
The euro resumed its drop against the dollar, down a third of a percent at $1.08775.
This is the current news of the market.
- Trading Instrument