US Labor Market Report Is in the Spotlight

The US dollar has been growing against a basket of major currencies despite weak economic data. The dollar index (#DX) closed in the green zone (+0.52%). Yesterday, a report on jobless claims was published in the US. Over 6.6 million US residents became unemployed last week amid the COVID-19 pandemic. The total number of jobless claims over the past three weeks has exceeded 10 million, which is a record high in history. Today, investors will assess the US labor market report for March, which may have a significant impact on the dynamics of currency majors.

At the end of March, President Trump signed into a $349 billion Paycheck Protection Program. The necessary assistance will be provided to millions of small enterprises to support the business. However, Americans are still not satisfied and worry about their future. Economists believe that between 20 and 45 million citizens will be without a regular job by the summer due to the crisis.

The "black gold" prices have shown a record increase recently. Oil has been growing after reports that Saudi Arabia wants to convene an emergency meeting of OPEC+ to discuss a new agreement. Currently, futures for the WTI crude oil are testing the $25.85 mark per barrel.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+2.31%), #DIA (+2.19%), #QQQ (+2.03%).

The 10-year US government bonds yield has not changed. At the moment, the indicator is at the level of 0.60-0.61%.

The news feed on 2020.04.03:
  • - Composite PMI in the UK at 11:30 (GMT+3:00);
  • - US labor market data at 15:30 (GMT+3:00);
  • - ISM non-manufacturing PMI at 17:00 (GMT+3:00).

by JustForex, 2020.04.03

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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