USD index consolidating above lowest level in 27 months ahead of US jobless claims

Mohammed Abdelkhalik
August 6, 2020

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USD index rose on Thursday against most of global currencies, to hold above the 27-month low recorded earlier in the Asian market, as part of temporary recovery operations, this comes ahead of issuance of weekly subsidy requests in United States.

USD index rose 0.2% to the level of 92.96 points, the opening level of trading today at 92.77 points, and the lowest level at 92.52 points, the lowest since May 2018.

USD index ended yesterday trading, down by 0.75%, in its second daily loss, with the continued selling of USD against most of global currencies.

In the other side; GBPUSD rose on Thursday to expand its gains for the second day in a row, hitting the highest level in five months, benefiting from the continued decline in US currency levels, this comes after the issuance of  decisions of Central Bank of Britain at the conclusion of its periodic meeting For monetary policy.

GBPUSD rose by more than 0.5% to $ 1.3183, the highest since last March, and the opening price of trading today at $ 1.3111, and recorded the lowest level at $ 1.3110.

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USD index awaiting for jobs data in private sector

Pressure on the currency was disappointing data on new jobs in the private sector in United States during July, which raised investor concerns that the recovery of US economy may lag far behind other countries due to the high level of Corona virus infection.

It also presses USD, as the political dispute between the Democratic Party and its Republican counterpart continues over the viral pandemic relief plan.

Investors are awaiting later today the release of weekly unemployment benefit data in United States, with a view to assessing US labor market, in light of developments in Coronavirus outbreak and US government’s inability to control the epidemic so far, which prompted it to tighten public isolation again in some cities And the states.

By 12:30 GMT, US jobless claims are expected at 1.410 million in the week ending August 1 from 1.434 million the previous week.

And state of the great closure of  American economy since the middle of last March resulted in about 53.5 million people in United States formally applying for unemployment benefit, and raising US unemployment rate to its highest level ever at 14.7% last April.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.