Dollar Slips ahead of Jobless Claims

USD

The dollar index, which measures the greenback against a basket of major currencies, extended losses dropping to 100.50. Market participants are looking forward to the weekly jobless claims that will be released today, as they expect a massive rise as companies lay off workers due to the coronavirus outbreak. The dollar weakness pushed the demand for the Euro and the pound, where the EURUSD rose to 1.0939, and the GBPUSD recovered to $1.1960

Equities

Major US stock-index futures drifted lower during the Asian session as the expected rise in jobless claims eclipsed the $2 trillion stimulus bill. The senates backed the coronavirus stimulus bill that aims at helping unemployed people and industries disrupted by the virus outbreak. However, there are indications that some states will need more support. The Dow Jones Industrial Average futures dropped to 20618, the S&P500 futures dipped to 2411, and Nasdaq futures declined to 7320. Also, in Europe, the stimulus failed to ease the virus anxiety where DAX futures surrendered partial gains falling to 9526, and FTSE plunged to 5434.

Metals

Gold prices fell for the second consecutive day as investors' rush-to-cash continued. The spot price of a gold ounce fell to $1590, and gold futures dipped to $1611. Meanwhile, the price of a silver ounce hovered near $14.40, while palladium futures eased to $2108 after hitting a two-week high of $2319.

Oil

Oil prices continued to trade in a tight range awaiting fresh drivers. Yesterday, the Trump administration announced that the US could intervene to ease the Saudi oil production surge via G-20. The suspended economic activity around the world weakened the demand outlook. On the other hand, the US Energy Information Administration reported a buildup of 1.623 million barrels in US inventories last week. The West Texas Intermediate crude futures dipped to $23.40, and Brent futures declined to $26.23.

Major Economic Events

Disclaimer 

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