Unemployment Due to Coronavirus Could Exceed That of Financial Crisis: UN Officials

Economic Events Outlook, Apr 2: US and Spanish Unemployment Claims in Highlights

Posted Thursday, April 2, 2020 by
Arslan Butt • 2 min read

Good morning, traders.

On Thursday, the dollar continued to gain as traders hastened to the safe haven currency, which is known as the world’s most liquid currency, given the extensive disruption to global trade in the wake of coronavirus pandemic.

The economic calendar is again carrying low impact economic events except for the US Unemployment Claims, which are expected to soar to dramatically by 3600K. It’s not a surprising figure as we all know that the lockdown around the globe and an increased number of cases in the US is driving this data. We may have a muted response of traders on its release. Let’s take a look at top economic events.

Watchlist – Economic Events Today

EUR – Spanish Unemployment Change – 07:00 GMT

The Ministry of Employment will be reporting the change in the number of unemployed people during the previous month. Although it’s usually observed as a lagging indicator, the number of jobless people is a vital sign of overall economic strength because customer spending is highly correlated with labor-market health.

Spanish unemployment change is expected to show a massive surge in unemployment change from -7.8K to 27.7K. The primary reason is a prolonged lockdown, which is hurting businesses, and they have started downsizing due to a drop in revenues. This may keep the single currency Euro under pressure today.

CAD – Trade Balance – 12:30 GMT

Statistics Canada is due to report the Canadian trade balance figures, which exhibit a difference in value between imported and exported goods and services during the reported month.

The Canadian economy is export-oriented and contributes most to its foreign exchange earnings. Most of the income comes from the exports of crude oil, but due to an increase in the supply of oil and a drop in prices, the Canadian trade balance is likely to fall to -2.3B vs. -1.5B previously.

USD – Unemployment Claims – 12:30 GMT

The US Department of Labor is due to report the unemployment claims which shows the number of individuals who filed for unemployment insurance for the first time during the past week.

As Bloomberg notes, the latest jobless claims record will come days after President Trump declared that social distancing would continue until April 30, amid swiftly spreading diseases and deaths across the nation. The president earlier said he hoped that the economy would be “raring to go” by the Easter vacation, but that’s no longer the plan.

The Department of Labor is likely to report 3600K jobless claims vs. 3283K reported during the previous week. It’s been the historical figure, but it won’t be surprising as we all know the lockdown around the globe and an increased number of cases in the US is driving this data. We may have a muted response of traders on its release.

That’s all for now, but stay tuned to our economic calendar for live market updates and forex trading signals.

Good luck!

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