US Dollar dented on dismal data; EU recovery fund boosts euro

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US Dollar dented on dismal data; EU recovery fund boosts euro

On Thursday, the American currency had witnessed a broad-based downpour across the global FX markets, as another set of slanderous US economic data had sent shockwaves accros the money markets, while the bloc’s common currency rose to a nearly two-month peak against its American counterpart over optimism of a €750 billion stimulus package.

In point of fact, followed by Thursday’s tattering wave of US Dollar sell-off, a number of analysts were quoted saying that the shortcomings across the board for the American currency were mostly meaded out of a basket of baleful economic data, while US initial jobless claims data released earlier on the day had revealed that applications for the initial unemployment benefits were holding above a throbbing 2 million for the tenth straight week in a row, suggesting a second layoff wave alongside a delay in economic recovery.

Nonetheless, beside the other side of the Atlantic, the bloc’s single currency gained as much as 0.57 per cent to wrap up the day at $1.1066 following reveal of a €750 billion stimulus package, remarking the euro’s third straight session of gains against its American peer, while the British currency had also reported robust gains following a revival of risk-appetite.

US Dollar index (DXY) drowns to two-month lows as initial jobless claims suggest further pain ahead

Citing statistics, as the US initial jobless claims had reached a staggering 40 million since March 23rd, meaning roughly an eighth of entire US population became jobless over the past two months that stoked possibilities of a further shrinkage in private sector payroll amid a dwindling US consumer spending, the lifeblood of the US economy, the US Dollar index (DXY) measured against a basket of six major currencies faltered 0.37 per cent to 98.54 on Thursday’s closing bell.

Besides, followed by media headlines that the Brexit deal had again hit a stand-off, the British Pound gained 0.48 per cent to $1.2322 against the greenback, while the commodity-dependent Canadian Dollar rose marginally to $1.3774 despite an upward spiral of the crude oil futures’ prices.

Meanwhile, adding that the market analysts remained sceptical over an approval of the Franco-German proposal of €750 billion stimulus package in Brussels, an FX analyst at Monex Europe, Simon Harvey said on Thursday’s FX market closure, “We expect EURUSD volatility to remain well supported in the coming months.