USD Loses Strength Pending the Release of Initial Jobless Claims Numbers
Just last week, the USD was rising against every other currency.
Now the reverse is the case. Over the last couple of days, the euro has picked up significantly against the dollar. Since President Trump declared a national emergency, even minor currencies like the MXN, DKK, and NOK, have risen against the USD.
As the global pandemic continues, things are expected to get darker for the United States. Major activities within the country have been halted and Trump is continually investigating options to open up the economy again as soon as possible.
As we await the jobless claims report, our experts have predicted that the claims will reach the highest levels seen in 53 years.
Our estimates range reveals that claims will be between one million and 4.5 million. No matter where the number falls within this range, it will still be far greater than the jobless claims recorded when the United States hit the 1982 and 2008 crises. In both of those cases, new claims never rose above 700,000.
With the current pandemic, a whole range of industries including the food and travel industries are likely to experience downturns that far exceed the 1982 and 2008 crashes.
On Thursday morning, futures for the Nasdaq and S&P traded lower, with the Nasdaq dropping by 0.8% and S&P 500 by 1%. And yet, prices continue to fall.
As long as President Trump does not reopen the US economy, the bulls will keep losing momentum in the stock market, and we’re in for a long ride down.
The global pandemic has caused US stocks to drop significantly. Shares are sinking lower by the day and investors are patiently awaiting the jobless claims numbers to reveal the exact levels of damage to the US economy.
The Governor of California expressed that in California alone, over a million people have filed initial jobless claims.
Should the jobless claims continue at these rates in other states, even the high estimates of 4 million range might break and we may see claims rise to a staggering 6 million.
Danske Bank analysts have reported they have received some of the initial jobless claims numbers and that they are exceedingly bleak. Companies have had little choice but to disband a majority of the workforce.
It doesn’t have to be said that nothing will better emphasize the extent of the damage being caused by the COVID-19 pandemic on the United States economy more than the initial jobless claims numbers that are scheduled to be released shortly.
But where will things go from here?
We will keep our fingers crossed and watch for events to unfold in the coming weeks.