Fed's Daly: US job market is definitely 'still in a ditch'

Ross J Burland FXStreet

San Francisco Federal Reserve President Mary Daly says that the US job market is definitely 'still in a ditch'.

She also says ''we should not be worried about inflation right now,'' and that negative rates are not on her list of tools.

On Wednesday she said the US central bank won't be taking the "punchbowl" preemptively from the economy as the recovery picks up and unemployment falls, Reuters reported.

''The Fed will use a dose of patience and will not get 'overly joyous' as the jobless rate falls", Daly said at a virtual event held by Northeastern University.

"We are not going to take this punchbowl away...We are committed to leaving the monetary policy accommodation in place until the job is fully and truly done."

Meanwhile, the US dollar index hit its highest since November overnight, at 92.697, breaking its 200-day moving average.

The euro sank due to rising coronavirus cases in Europe with improved unemployment numbers in the United States.

We saw the biggest rise in new coronavirus cases in Germany since Jan. 9 and the largest number of patients with COVID-19 requiring intensive care in France so far this year.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.