The US Dollar is mixed after coming under some pressure, especially against its major rivals. Analysts say that sentiment remains largely negative as the stalemate in the US Senate endures; late Thursday it was announced that the Senate would be on recess until after the US Labor Day holiday which takes place in two weeks. As such, no further relief for those impacted by the Coronavirus pandemic will be forthcoming in the short term. Wall Street also had a down day as a result, with the Dow closing down 80 points; investors are concerned not just about the relief package but the controversy regarding funding for the US Postal Service.
As of 10:09 am in Tokyo, the EUR/USD was trading at $1.1811, down 0.0499%; the pair has ranged from a low of $1.18056 to a high of $1.18213 in the current session. The GBP/USD was up at $1.3062, a gain of 0.0061% and off the session peak of $1.30757. The USD/JPY was higher at 106.9400 Yen, up 0.01%.
Weekly US Unemployment Claims Show Decline
In the US, the Labor Department announced on Thursday that claims for jobless benefits had unexpectedly improved for the week ended August 7th. Both initial claims and continuing claims were less than analysts had expected, coming in at 963,000 and 15,486,000, against the forecasts of 1,120,000 and 15,898,000, respectively. Market players are still concerned about the resurgence of the Coronavirus in many areas of the country, especially those which have rescinded the lockdown and quarantine orders. As the summer draws to a close, and with many schools set to reopen in the coming weeks, there is a concern that there will be a significant rise in the numbers of infected that could prompt local governments to, once again, begin to enforce lockdown measures.