U.S. dollar Rises, post less Unemployment rate than Expected
According to various reports, there has been a rise in the value of U.S. dollar post the nation’s facing the loss of employment than expected in the month of April, 2020 due to the fallout from the COVID-19 pandemic.
The reports also suggested that, the U.S. dollar was on the way for its best weekly performance in opposition to Swiss franc. The data reflects U.S. unemployment amount hit almost 20.5 million in the month of April. Making an unemployment rate at 14.7% less than the expected rate of 16%.
The chief market strategist at Bannockburn Globla Forex in New York states, “This economic skid is so severe, does it really make much of a difference between a 20.5 million jobs lost and 22 million?”
“It doesn’t really change anything. The market has rightly shrugged it off,” he adds.
The dollar index rose for 0.1% at almost USD=99.824. The appetite for the risk was broadly higher on the day (dated May 08, 2020), with U.S. stocks and Treasury yields higher.
Also, reported by various sources, Chief market strategist at Prudential Financial, New Jersey, Quincy Krosby says, “These (jobs) numbers happened quickly, it was a result of government shutdowns, not because of a prolonged 12 years of depression.”
“To counter that, it is important to see the attempt to open the economy and that is what the market is focused on, as opposed to the dismal implications of these numbers,” he adds.
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