Let us check the market. The Australian dollar is often seen as a risk proxy when it comes to the currency market. It stood at $0.6947 recently. On Thursday, it hit a five-month high of $0.6987.
The common currency changed hands at 123.620 against the yen. Overnight, it raised to a 13-month high.
The Swiss franc is another safe-haven currency. On Thursday, it hit a five-month high, and last stood at 1.0830.
The index for the dollar is on course for its third consecutive week of losses at 96.808. Furthermore, it is staying near its lowest figure in nearly three months.
The dollar traded at 109.11 against the yen. Thus, it briefly touched a two-month high of 109.235.
Easing social distancing restrictions supported hopes for economic recovery. Thus, unwinding bets on safe-haven currencies reflected broad optimism in financial markets.
The United States weekly jobless claims report showed that last week the number of Americans filing for benefits dropped below 2 million for the first time since mid-March. Nevertheless, that is three times larger than their peak amidst the global financial crisis.
Due later on Friday, official United States employment data will most probably show payrolls falling by 8 million in May after a record of 20.537 million in April.
The rate of unemployment is forecast to rocket to 19.8% from 14.7% in April. It will be a post-World War Two record, which was 14.7%.
Bart Wakayabashi is the Tokyo Branch Manager of State Street Bank. He said that the market is risk-on despite the historic jobless rate. Nevertheless, everyone is still worrying that the mood could change. Thus, they put on tight stop-loss orders. There is no firm conviction in the market.
Per the United States dollar, the Hong Kong dollar rose to 7.7500, the sharp end of its 7.75-7.85 trading band. Since May 21, this has happened for the first time. Thus, it prompted the Hong Kong Monetary Authority to intervene in the market.
This is the current news of the market.
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