The US Labor Department reported on Thursday that weekly unemployment claims reached 3.28 million. The figure eclipsed the prior record of 695,000 jobless claims in October 1982, underscoring the severe damage the coronavirus has caused to the American economy. Analysts had widely expected that claims would rise to at least 1 million, with some estimates as high as 4 million.

Late on Wednesday, the Senate unanimously approved a $2 trillion economic relief package including direct payments to Americans, expanded unemployment benefits, loans to businesses and increased funding for hospitals. Equities rebounded and the dollar weakened this week as stimulus hopes boosted risk appetite and dampened safe haven demand. The risk sensitive Australian dollar extended gains along with other ‘comdolls’ after falling to the lowest levels since 2002 earlier in March.

According to data from Johns Hopkins University, the number of Coronavirus COVID-19 global cases has risen to 487,648 with 22,030 fatalities. On Tuesday, WHO spokeswoman Margaret Harris told reporters that the US has the “potential” to overtake Europe as the new epicenter of the coronavirus.On Wednesday night, the United States registered over 1,000 COVID-19 deaths. In Europe, Spain suffered more than 700 fatalities in 24 hours and has now overtaken China in number of deaths. A glimmer of hope emerged as Italy’s coronavirus infections rate slowed for a fourth successive day Wednesday.

Last week the US Dollar Index reached its highest levels since January of 2017, lifted by its safe haven status and the scramble for cash amid the worsening pandemic. It has since lost ground as the markets appear somewhat reassured by the unprecedented levels of stimulus unveiled. USD/JPY fell to its lowest levels of the week on Thursday in the wake of the jobless claims data. Support lies at the 109.32 level, while the recent high of 111.70 represents resistance.

Any reviews, news, research, analysis, prices or other information contained in this article is provided as general market commentary, does not constitute investment advice and may undergo changes from time to time. Trading the Financial and Currency Markets on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as to your favor. Before entering trading Financial and Currency Markets, you should carefully consider your investment objectives, level of experience and risk appetite. There is a possibility that you could sustain a loss of some or more of your initial investment and therefore you should not invest money which you cannot afford to lose. You should be aware of all the risks associated with Financial and Currency Markets trading, and in case you have any doubt, rather seek advice from an independent financial advisor. Scandinavian Capital Markets AB, its owners, employees, agents or affiliates do not give investment advice, therefore Scandinavian Capital Markets AB assumes no liability for any loss or damage, including without limitation to, any loss of profit, which may be suffered directly or indirectly from use of or reliance on such information. Scandinavian Capital Markets AB strongly encourages consultation with a licensed representative or financial advisor regarding any particular investment or use of any investment strategy.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex Analysis

Editors’ Picks

EUR/USD extends slump after NFP shows massive job loss

EUR/USD is trading below 1.08, down on the day. The Non-Farm Payrolls report has shown a loss of 701,000 jobs, worse than expected. The ISM Non-Manufacturing PMI surprised to the upside with 52.5 points. 


GBP/USD drops below 1.23 amid sour mood, after UK data

GBP/USD has dropped below 1.23 as the market mood sours. Final UK Services PMI dropped to 34.5 points, worse than expected.  


NFP Quick Analysis: 701K jobs lost only be tip of the iceberg, why King Dollar is ready for coronation

The US lost 701,000 jobs in March, the worst in 11 years. The Non-Farm Payrolls figures are lagging the fast-moving events. Wage growth is also skewed and should be ignored. The safe-haven dollar has room to rise. 

Read more

WTI trades in three-week’s highs near $26.50 a barrel

WTI is jumping from multi-year lows following the US President Trump’s tweet of yesterday (Thursday) suggesting a Saudi-Russian deal was on the pipeline.

Oil News

Gold remains confined in a range, moves little post-NFP

Gold extended its sideways consolidative price action around the $1615 region and had a rather muted reaction to the US monthly employment details

Gold News

Forex Majors