Dollar Stays Firm Against Peers

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The U.S. Dollar extended its march over most of its peers to yet another session, as rising worries about growth due to the surge in coronavirus infections supported the currency’s uptick on Thursday.

Data showing a notable expansion in U.S. GDP in the third quarter, and a drop in jobless claims in the week ended October 24th, further supported dollar’s upmove.

Data from the Commerce Department said real gross domestic product skyrocketed by 33.1% in the third quarter after plunging by 31.4% in the second quarter. Economists had expected GDP to soar by 31%.

The substantial rebound in GDP came as consumer spending bounced back sharply, spiking by 40.7% in the third quarter after plummeting by 33.2% in the second quarter.

Data from the Labor Department showed initial jobless claims in the U.S. dropped to 751,000 in the week ended October 24th, a decrease of 40,000 from the previous week’s revised level of 791,000. Economists had expected jobless claims to dip to 775,000 from the 787,000 originally reported for the previous week.

The dollar index rose to 94.10, and despite paring some gains, was still firmly up with a strong gain of 0.55% at 93.92.

Against the Euro, the dollar firmed up over 0.6% at $1.1675. The Euro was mostly lower against other major currencies today after the European Central Bank President Christine Lagarde said that surging Covid-19 cases and reimposition of lockdowns are challenging the bloc’s fragile economic recovery and the central bank is prepared to deliver additional stimulus at the next policy meeting in December.

Against the Sterling, the dollar firmed up to $1.2881 before easing to $1.2927, but still stayed strong, gaining about 0.43%.

The Yen was weaker at 104.63 a dollar, sliding from 104.32 a dollar on Wednesday.

The Aussie was weak, fetching $0.7028 a unit, nearly 0.25% less than previous close of $0.7045.

The Swiss franc was down by about 0.6% at 0.9159 a dollar, easing from $0.9105, while the Loonie was little changed at C$1.3326, recovering from C$1.3390 a dollar.

Data released by Statistics Canada this morning showed the value of building permits in Canada increased by 17% in September to C$9.4 billion following a downwardly revised 1.4% increase in the previous month.

Average weekly earnings of Canadian non-farm payroll employees rose 7.9% in August after rising 8.7% a month earlier.

The material has been provided by InstaForex Company – www.instaforex.com

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