At the end of this trading week, EURUSD remains weak; the USD is looking more attractive.
The major currency pair has been falling for the third consecutive trading session in a row. The current quote for the instrument is 1.2140.
Investors remain quite positive towards the “greenback” due to expectations of a new stimulus package to support the American economy, which don’t scare them anymore: the package is obviously offering more pluses than minuses.
The statistics published yesterday were rather mixed. A weekly report on the Unemployment Claims showed 965K after being 784K the week before and against the expected reading of 785K.
There are several fundamental reasons for this growth. First of all, the government extended the period of time for claiming supplement benefits until March 14th. The benefit amount is $300 and it’s quite logical that more unemployed people decided to apply for it. Secondly, earlier the government expanded financial help to those who had already “depleted” their benefits, as well as self-employed and freelancers. Taken together, these people made the weekly reading increase.
As a reminder, December was the first time over the last 8 months when the American economy cut the number of jobs. Possibly, it might take the labor market several years to completely recover after the coronavirus pandemic.
There will be a lot of interesting reports from the USA today. for example, the Retail Sales, the PPI, the Core PPI, the Industrial Production, and the Capacity Utilization Rate for December. In addition to that, the country is scheduled to publish a preliminary report on the Consumer Sentiment from the University of Michigan for January, which is expected to decrease a little bit.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.