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US Dollar Strengthens as Unemployment Claims Fall Below 1 Million

The US dollar is making gains against its major peers early on Friday, supported by recent encouraging jobless claims figures coming out of the US, even as its safe haven appeal receives interest amid rising worries about the economic impact of the coronavirus pandemic. At the time of writing, the US dollar index DXY is trading around 93.29.

The dollar strengthened against commodity currencies like the AUD and NZD in early trading over dovish remarks about economic recovery from the RBA governor even as New Zealand reported fresh cases after being free from infections for over 100 days. Meanwhile, the Euro continues to trade strong against the dollar amid hopes for economic recovery in European countries after emerging from lockdowns.

The US dollar was pushed higher during the previous session after the release of unemployment claims data for the last week. Applicants for unemployment benefits in the US fell below 1 million for the first time since the pandemic started, with jobless claims touching 963k for the previous week.

However, gains in the greenback remain limited amid continued uncertainty around the next round of the fiscal stimulus measures by the US government. Negotiations on the coronavirus relief bill have stalled in Congress, and there is no clarity on when issues will be resolved and more financial aid will be released by the Trump administration.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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