- Pound Continues Tumble on Dollar Strength
- US Jobless Number Drops Again
- Market Futures Red as Nerves Continue
Forex market majors are continuing to feel the heat today after a swift sell-off in the equities market and a general risk-off mood strengthened the US Dollar. The GBP has tumbled yet again declining below the benchmark $1.40 while the Euro has also been shaken with bond yields continuing to pick up in the US. Jobless claims continued their positive move downwards though the majority of focus still remains on Wall Street where the futures market remains bleak after the biggest selling day of the year as all the major markets took a nosedive.
Major Currency Pairs Drop Lower as Dollar Improves
The Pound in particular had been enjoying a moment in the sun of late having reached multi-year high points as recently as last week. The currency has been buoyed in post-Brexit times by an improving response to the pandemic, and thoughts that the UK restrictions on travel may eased soon. Sterling though has been brought back below a key point very quickly on account of two major events.
The first of these is rising US bond markets and yields in the face of some anxiety that the economy could be overheating. This sparked a major sell-off yesterday with many in forex trading retreating to the safe-haven Dollar for cover. GBP has also been impacted by comments from the Bank of England Governor in regards to the 2021 outlook so far. His advice was to expect a negative Q1 from the economy and this has also worked to weaken the high flying Pound.
Jobless Numbers Provide Solace
Amidst the chaos of the market yesterday there was a patch of light in the form of US jobless claim numbers released early in the day. These showed that the number of initial jobless claims dropped significantly to 730,000 for the previous week. While still being tremendously high in general, the positive take is the number was a strong beat on the 845,000 analysts had expected.
This keeps the overall number trend moving in the right direction as continuing claims also fell to a new pandemic-era low point albeit even as the total level of unemployment crept higher. These numbers were not really felt in the market or by forex brokers as any kind of positive given the other happenings of a hectic day, but could be reflected on as another step in the right direction.
Tentative Market Futures Stay Red
There were big losing days on Wall Street yesterday with all the major indices knocking big numbers off the board. The Dow Jones finished the day down more than 500 points while the tech-heavy NASDAQ shed 3.5%, the biggest down day since October.
That negative momentum appears to have spilled over somewhat to the early trading with all the major markets flat or selling off slightly before the bell. Many will be hoping for an easing of inflation concerns and something of a bounce-back particularly in household tech names that have been hard hit.
Spread the love
https://www.securities.io/dollar-dominates-forex-market-amid-sell-off/
2021-02-26 11:12:23Z
CAIiELDKncAnEwwWCKB3wGJcWfgqGQgEKhAIACoHCAowy5uTCzDmx6gDMLWBvwY
Bagikan Berita Ini
0 Response to "Dollar Dominates Forex Market Amid Sell-Off - Securities.io"
Post a Comment