- Dollar Recovering From Early Weakness
- US Jobless Claims to Come
- Positive Period for Stocks Continues
The US Dollar forex market has managed to rebound stronger in early trading on Thursday after selling off slightly in the previous day. A more positive market mood resulted in some Dollar weakness during the previous session, but that has been reversed as the market looks toward US employment numbers to be released later in the day. These figures will be a key driver on an otherwise quiet data day. Meanwhile, on Wall Street, stocks are looking to continue their solid run into the new year. This comes as both the Dow Jones and S&P 500 notched new records.
Dollar Bounces Back in Early Hours
Those forex trading both the Euro and Pound had a positive day on Wednesday as both currencies continued to gain some ground on the Dollar. The Euro peaked above 1.135 while the Pound did the same above 1.35. These were the strongest numbers in more than a month for both currencies which have been kept very much under pressure by the USD of late. The positivity has not lasted though as both dip back toward their previous levels while the US Dollar Index stays above 96.00.
A big help in this regard came from US Treasury yields. These firmed up to help the USD regain some lost ground in the early trading hours of Thursday. Combined with a thin trading volume approaching the New Year holiday, the greenback looks set to remain in a very strong position.
Jobless Claims in Focus Approaching Holiday
Data is light too for traders and forex brokers to see any real movement in the market. This attaches even more importance to jobless claims data to come from the Department of Labor later today. These numbers have been improving steadily of late as more and more people get back to work, though the impact of the Omicron variant is a concern.
In this regard, the US is now reporting a pandemic-era high number of cases as both the Omicron and Delta COVID-19 variants maintain a foothold nationwide. A record seven-day average of 265,000 cases was reported on Tuesday, eclipsing previous highs. This is despite the fact that more than 60% of Americans are classified as being fully vaccinated.
Wall Street Hopes for Another Positive Day
Despite a slide in travel stocks with continuing COVID-19 concerns, stocks on Wall Street closed yesterday broadly positive. Both the S&P 500 and Dow Jones closed at new record highs and will be looking to continue the positive form they have seen over the last several days.
Futures were little changed, and there may be some continued turmoil in travel stocks as Omicron cases keep rising, but 2021 has been a widely positive year for markets. Both the S&P and NASDAQ are up well over 20% while the Dow Jones has managed to bank gains of more than 19% so far.