The situation in the United States, COVID19, and Dollar

The situation in the United States, COVID19, and Dollar

Let us track the changes in the market. Attention still focused upon the lack of a new relief package to help the United States economy recover from the damage caused by the coronavirus outbreak. In early European trade Friday, the United States dollar edged lower.

The U.S. dollar index tracks the greenback against a basket of six other major currencies. At 0650 GMT (2:50 AM ET), the dollar index was down 0.1% at 93.235. It is set to continue a seven-week losing streak. EUR/USD pair was flat at 1.1812, USD/JPY decreased 0.1% at 106.84, GBP/USD was also flat at 1.3062. It was ahead of eurozone gross domestic product data for the second quarter later in the day.

On Thursday, the United States said that the number of unemployment claims over the past week dipped below the one million marks. Since the COVID-19 outbreak, it is the one million mark for the first time.

United States

Nevertheless, the grim reality that more than 30 million Americans are out of work overshadowed the news. Moreover, there was the suspension of negotiations over the latest United States stimulus measures as the Senate wrapped up its session on Thursday.

That suggests that the fight for a new package will most probably drag until September. It is drawing dangerously near to the period when Washington shuts down to fight the national elections.

Furthermore, with a further rise in coronavirus case numbers, the United States faces a ‘gruesome’ fall. That is what a Yale School of medicine epidemiologist told Politico Thursday.

Gregg Gonsalves said that the fall could be incredibly gruesome. Moreover, he argues that the White House’s handling of the pandemic in recent weeks has left the United States no more protected than it was back in June.

The United States retail sales will be out at 1230 GMT (8:30 AM ET).

That is leading news of the market.

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