The US reported a leap to 3.283 million jobless claims in the wake of the coronavirus crisis. There are three reasons why it is positive for the dollar, according to FXStreet’s analyst Yohay Elam.
“Unemployment is engulfing the US as weekly jobless claims jumped to 3.283 million, an increase of 1,053%. The initial market reaction has been muted, as traders were bracing for a horrible outcome.”
“The Fed is done for now: Contrary to what Jerome Powell, Chairman of the Federal Reserve said, the central bank has little ammunition left.”
“Government stimulus may be insufficient: It seems that despite all the bipartisan efforts, politicians are not up to speed with reality. Failure to speed up efforts may further exacerbate the situation.”
“More impatience from the president: Donald Trump already expressed his desire to see lockdowns end by Easter. Such figures may trigger further impatience, in turn hindering efforts to fight the disease.”