Dollar and gold fly after US unemployment data, which is growing strongly

  1. Home
  2. /
  3. economy
  4. /
  5. Dollar and gold fly after US unemployment data, which is growing strongly

There are 6.6 million new requests for unemployment benefits in the United States, almost double than expected, so the dollar returns above 100 points, gold above 1610$ an ounce.


Almost double that expected. The demands for new unemployment benefits are increasing. The dollar returns to show its muscles. Analysts’ forecasts predicted worsening jobs in the United States, but much less than that recorded in the week ended March 21 last: 3.5 million requests for new unemployment benefits should have been around 200 million more than to the 3.3 million previously recorded. Instead, they are 6.6 million, a new historical record, in particular by workers in the housing and food sector.

The average of four-week grant applications, which eliminates volatility from one week to the next, also jumped to an all-time high: 2.612 million people. The previous figure stood at 1.004 million while the continuous requests for unemployment benefits reached 3.029 million: in this case it is the maximum since July 2013.

Dollar back above 100

The market reaction was not long in coming. The dollar jumped more than 0.6% in the following 60 minutes in which the American employment data was published, exceeding 100 points in the Dollar Index after having lingered in the 99.5 area for the whole morning of April 2, with the euro-dollar at the lows of the last six sessions at 1.0852. Heavy Wall Street, with losses of over 4% and also the European markets, positive in opening, with the Dax in Frankfurt undergoing a strong bearish impulse of 1.46% in the wake of the red opening of the US exchanges.

Fear, dollar and safe havens

As expected, the bad data on American unemployment, although predictable despite the package of over 2 trillion dollars approved by the White House to deal with the coronavirus emergency, (will cover payments for the unemployed up to $ 600 per week for the next four months) brought a sharp appreciation of the American currency. With the fear of being the new owner of the markets, investors are mainly relying on the dollar and gold has also returned above 1.610 after the eve lows at $ 1,567 an ounce.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

DISCLAIMER - Finance Drops is a blog that deals with topics related to personal finance, economic growth and savings management. It does not offer financial advice, the analyzes reported are to be considered general contents for information purposes. Finance Drops articles that talk about money cannot guarantee certain results because the possibilities vary according to the ability and economic situation of the reader. Finance Drops, therefore, cannot guarantee the success of the suggested strategies and does not assume responsibility for imprudent choices made on the basis of an incorrect perception of the contents of these pages. Risk Warning: Past performance reported in the articles cannot guarantee future results. Furthermore, products that allow access to leveraged instruments may involve a high degree of risk of loss of capital. All the solutions mentioned offer truly effective protective measures to manage risk, but sometimes it is possible to lose more than you invested.