Forex Marketz Daily Forex News – Fully Markets Update
The almighty U.S. dollar is on track for its biggest weekly decline in over a decade as traders monitor a number of stimulus packages around the world.
The Senate passed the $2.2 trillion stimulus package late Wednesday night which calmed recessionary fears but shockingly bad weekly unemployment claims shocked the Forex markets.
The U.S. Labor Department showed the worst rise in initial jobless in the history of the United States. The economic damage from the Covid-19 pandemic is now showing in U.S. economic data. This was a small shock to dollar traders who are still concerned about liquidity issues in the credit markets.
The dollar fell against the Japanese yen Friday, during the Asian trade session. The headline USD/JPY Forex market was last trading at 109.42 yen.
The EUR/USD currency exchange rate was up 1.40 percent on Thursday and was last trading at 1.1025.
The British pound was the biggest winner against the U.S. currency on Thursday as it popped 2.8 percent. The GBP/USD Forex market was last trading at 1.2183.
Panicked Forex Traders Sell the Dollar but then Calm Down
Yesterday the U.S. Labor Department released weekly unemployment claims data for the week ending March 20. Initial unemployment claims surged over 3.28 million last week. This was an unprecedented increase as strict lock down measures are forcing businesses to lay workers off.
The previous record was in 1982 when weekly claims swelled by 695K. Last week’s unemployment claims data was an increase of three million from the week prior.
Forex Traders wait on Congress as the Debate the Stimulus Package
The House of Representatives, on Friday, will start to debate and hopefully hold a vote to pass the massive $2 trillion stimulus package.
The U.S. Speaker of the House, Nancy Pelosi (D) said that she will support the stimulus package and expects a vote late on Friday. On Thursday, the U.S. Senate passed the stimulus package by a vote of 96-0.
The stimulus bill, if passed by the Congress, then goes to the desk of U.S. President Donald Trump. He has promised to immediately sign the stimulus bill into law.
