The US dollar weakened on greater confidence in the broader financial markets as the government reported initial jobless claims falling to their lowest levels in three months. A renewed rally in the equities arena, surging Treasurys, and positive economic data weighed on the conventional safe-haven asset. With the latest drop, the greenback has officially turned negative for the year.
The US dollar rose against some of its major currency peers in the middle of the trading week as financial markets failed to react positively to strong retail sales data. The greenback has strengthened during the holiday-shortened trading week amid investors continuing to seek safe-haven assets during the broader economic uncertainty.
The US dollar added to its weekly decline on Thursday after initial jobless claims came in higher than market forecasts. With nearly 800,000 people applying for unemployment benefits, the American labor market is failing to recovery, despite coronavirus vaccines rolling out, states reopening their economies, and new infections coming down. Is the mini-bull run over for the greenback?
The US dollar is holding steady against many of its major currency peers in the middle of the trading week. Inflation came into focus for foreign exchange markets on Wednesday, as well as the likelihood that the US government will pass President Joe Biden’s $1.9 trillion stimulus and relief package. After an impressive start to 2021, the buck has taken a breather, sliding nearly 1% over the last week.
The US dollar slipped against many of its major currency rivals on Thursday, with market euphoria returning to the equities arena following the biggest one-day drop since October. This comes as initial jobless claims fell to a three-week low, and US economic growth slowed in the fourth quarter. So far in 2021, the greenback has exceeded expectations, but can the international reserve currency maintain its momentum heading into February?
The US dollar is soaring in the middle of the trading week, buoyed by a triple-digit decline in the financial markets. But investors have also been monitoring the Federal Reserve and potential hints as to what to expect from monetary policy moving forward. Housing and durable goods data were also in focus, but traders were more determined to know if they were receiving additional stimulus this year.
The US dollar is staging a rally to kick off the trading week, buoyed by investors pouring into the traditional safe-haven asset as global financial markets plummeted. Despite the US government agreeing to a nearly $1 trillion coronavirus stimulus and relief package, traders were more focused on news of a new COVID-19 strain that is starting to shut down Great Britain and other parts of Europe.
The US dollar extended its bearish pattern against many of its major currency counterparts on Thursday. The US government reported a larger-than-expected increase in the number of Americans filing for unemployment benefits. The buck was also hammered on the growing odds of another round of COVID-19 stimulus and relief spending to cushion the economic blows from the public health crisis.
The US dollar firmed by the end of Wednesday’s trading session, trimming losses against some peers and erasing them completely against others. Market analysts pointed at the slump of the US stock market as the likely reason for the recovery of the greenback.
The US dollar is trading relatively flat against multiple major currency peers, mainly due to the plethora of mixed economic data that were released ahead of the American Thanksgiving holiday. In focus in the middle of the holiday-shortened trading were jobs and personal income and spending. With a subdued greenback on Wednesday, what comes next on the other side of annual festivities and in the home stretch of 2020?
