- Euro and Pound Both Stronger on US Deal Hopes
- Jobless Claims Fall for Fifth Week
- Markets Gathering Pace From Positive News
Despite having many troubles of their own to contend with, the forex market has supported both the Euro and Pound to move higher today against the Dollar. This return to weakness for the Dollar is no surprise since a new stimulus package to boost the American economy appears to be getting closer to agreement. Meanwhile, there was more positive news as jobless claims for the week fell slightly more than expected. Both of these factors seem to have contributed to the strong opening on Wall Street today.
Timely Boost for Euro and Pound
Forex trading the Euro or the Pound has been a struggle of late. Both have continually edged downward throughout September without much positive news on the horizon to give them a leg up. Today though, they have both managed an upward move, though not on the back of their own steam but instead from news that a new US stimulus bill looks very close to being agreed.
With Markit PMIs revised downward, and EU unemployment having endured a fifth consecutive monthly rise to 8.1%, there was little for the bloc to shout about. More aid for the US economy though seems to have been just the medicine they needed as the Euro approached the 1.18 mark today. Despite a horrendous lack of progress on Brexit trade talks, the Pound too has managed to bounce back above 1.29. All thanks to US Dollar weakness.
Unemployment Claims Continue to Trend Lower
For the fifth consecutive week there was an improving number in terms of new unemployment claims across the United States. The jobless numbers dipped again to 837,000 in figures just released by the Labor Department. This number came in better than the 850,000 which had been expected, though the decrease still points to a relatively slow recovery.
Forex brokers though are sure to see this add to an improving market mood and move away from the Dollar by traders. Continuing claims pointed to a more significant drop of close to 1 million, though this number too remains vastly higher than anything seen in pre-pandemic times. There are currently more than 11.7 million continuing claims even after the decline. All eyes will now move to nonfarm payroll numbers which are due tomorrow.
Opening Bell Brings Positive Market Signs
US Stocks have kicked off October with a positive start. The opening bell on Wall Street has seen the Dow Jones, S&P 500, and NASDAQ all gain slightly to start the new quarter. The big tech names are leading the way as investors wait poised for any announcement on the stimulus bill talks.
A vote on the Democrats proposed $2.2 trillion package was delayed yesterday so more talks could take place. Analysts have taken this as a positive sign that an agreement could be reached. Republicans are thought to be willing to meet at some point below the $2 trillion mark.