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USD Forex Market Remains Weak Ahead of Busy Data Day

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USD Forex Market Remains Weak Ahead of Busy Data Day
  • Busy Day for US Pre-Christmas Figures
  • Trump Objection Fails to Strengthen Dollar
  • Markets Up Slightly Ahead of Festive Break

Ahead of the Christmas break, the US Dollar forex market remained weak. This was despite a confusing commentary on the US Stimulus deal from President Trump who commented that it was unsuitable and a disgrace. This comes ahead of a busy numbers day in America with the release of a lot of important figures including weekly jobless claims, monthly inflation numbers, and more. Trading in the pre-market remained quiet as many await more news on these numbers and what, if anything, the Trump objection means for the latest relief package.

Unemployment Numbers and Other Key Stats Due

The US Weekly Jobless Claim figures will be top of the agenda this morning with forex traders and others watching on to see if there are any big changes in the data which came in higher than expected last week. With an increasing number of COVID-19 cases leading to more caution on Main Street and restrictions in many states, analysts are predicting a rise in claims.

A total of 880,000 claims are expected to have been made in the last week. Both durable goods orders which are expected to show a slight increase and personal spending figures for November will also be released today with the latter expected to decline. The most important figure of the day though for forex brokers and traders alike will be the unemployment claims.

Trump Blasts Stimulus Package

Despite voicing great displeasure at the passage of the latest US Stimulus Package, outgoing President Donald Trump has failed to shake the markets or inject strength into the US Dollar. In fact, the Greenback has continued to dip slightly against other major currencies like the Euro and Pound.

Trump said the deal was a “disgrace” and that he wants to see the individual stimulus check amount increased from $600 as agreed, to $2,000 per person. This is despite the bill having already passed through both houses of congress. It remains to be seen then if the President has any power to derail the package which runs to a total of $900 billion in value. Top Democrats meanwhile have agreed to bring the increased proposal to the floor for a separate vote as a standalone bill this week.

Markets Try To Close Strong Before Christmas

While the traditional Santa Clause rally has failed to materialize in the stock market this year, the Dow Jones slipping 200 points yesterday as the stimulus deal was agreed, trading in the pre-market looks promising for a strong pre-Christmas finish.

The Dow Jones, NASDAQ, and S&P all look positive in early trading with a slight gain likely when the opening bell sounds. Still, much of this may depend on the early morning unemployment numbers which are due to be released at 8:30am E.T. This could set the tone for the day and a half up to early closing on Christmas Eve.

 

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Anthony is a financial journalist and business advisor with several years’ experience writing for some of the most well-known sites in the Forex world. A keen trader turned industry writer, he is currently based in Shanghai with a finger on the pulse of Asia’s biggest markets.

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