US, WASHINGTON (ORDO NEWS) — The dollar consolidated earnings against other currencies on Thursday in anticipation of the publication of US unemployment data for the week, which will give a better idea of whether the world’s largest economy will go into a deep recession.
The dollar rose 0.12% to 99.76 to 14.20 UTC, reaching a weekly high against a basket of major currencies earlier in the course of trading.
Economists suggest that claims for unemployment benefits in the US will increase by 5.1 million per week, while the total number of claims during the crisis will reach 20 million.
“In the short term, the dollar is expected to continue to strengthen due to its secure currency status, while the global economic situation remains uncertain,” said Andrew Wilson, head of fixed income at Goldman Sachs Asset Management.
“In the medium term, we expect the dollar to show decline as the economy begins to recover,” Wilson said.
The euro resumed its decline along with the dollar, losing 0.23% to $ 1.09 after the announced block measures.
“The market finally came to the conclusion that the measures provided by the Eurogroup are not enough,” said Ulrich Leitmann, Head of Currency and Commodity Research at Commerzbank.
The Japanese yen fell 0.15% after the media reported on the government’s plans to declare a state of emergency, not only in major cities of the country.
The dollar also rose against the currencies deemed more risky – the British pound, Australian and New Zealand dollars.
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