The dollar fell Thursday, hitting its lowest point in three days, as appetites for global market risk improved and traders looked forward to the April job report due Friday.
The number of Americans filing new unemployment benefits fell below 500,000 last week for the first time since the COVID-19 pandemic began more than a year ago. This shows that the labor market recovery has entered a new phase in a booming economy. Continue reading
The Dow Jones Industrial Average (.DJI) hit a record high, with financials and industrials rising after the unemployment claims report. Continue reading
As the US economy gained momentum due to massive government incentives and an improving health situation, Fed spokesmen on Wednesday downplayed the risks of higher inflation. Continue reading
The US dollar, considered a safe asset, fell against a basket of benchmark currencies, most recently falling 0.34% to 90.948.
“The outlook for the dollar that many are going to have in the House of Pain for some time now,” said Edward Moya, senior, because markets are largely convinced that the Fed has government bond yields under control, a market analyst at the FX broker OANDA in New York.
Investors looked forward to Friday’s closely watched report on non-farm payrolls. It is estimated that between 700,000 and more than 2 million jobs were created in April.
If the number is north of 1.5 million, it could spike government bond yields that would temporarily support the dollar, Moya said.
Elsewhere, the Bank of England said it would slow the pace of its bond purchases as it greatly increased its forecast for UK economic growth this year after the coronavirus slump, but stressed that it is not tightening monetary policy. Continue reading
“They said they will reduce the weekly pace of shopping, but that is not a signal and so at the end of the day the pound went up and down and did nothing,” said Erik Bregar, director and head of FX strategy at the Exchange Bank of Canada.
The pound recently fell 0.15% against the weaker dollar to USD 1.3890.
The euro rose 0.44% against the dollar to $ 1.2058 and against the pound by 0.54% to 0.8678 pence per euro.
Investors also looked out for elections in Scotland, which could usher in a political showdown over a new independence referendum. Continue reading
The Canadian dollar hit a three and a half year high against the greenback, helped by oil price gains and the Bank of Canada’s recent shift to a more Hawkish forecast.
“The Canadian dollar continues to have basically everything, technically, and when you look at the correlations between markets, it has been a difficult trend to get in the way,” said Bregar.
In cryptocurrencies, ether, the second largest cryptocurrency in the world after Bitcoin, hit a record high of $ 3,610.04. Continue reading
Bitcoin was down 1.03% to $ 56,919.50.
The meme-based virtual currency Dogecoin rose to an all-time high on Wednesday and expanded its rally to become the fourth largest digital coin in 2021. Continue reading
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