The Euro has declined versus the US Dollar is early trade on Thursday, in its fourth straight session of losses.
At 08:30, Euro versus US dollar was trading -0.2% lower at US$1.0940. This is at the lower end of the daily range of US$1.0931 – US$1.0969. EUR/USD has lost 1.8% so far this week as the number of coronavirus cases nears 1 million and as investors look ahead to US initial jobless claims this afternoon.
Euro Slips As Europe Locked Down For Longer
The euro trading lower across the board on Thursday as investors continue to analyse the coronavirus crisis and its impact on the economy. Italy is providing a glimmer of hope in that the number of deaths continue to ease and the number of new cases slow. However, medical experts suggest that the lock down in Europe should be extended. Whilst this should keep the number of cronavirus cases falling, the economies would also remain paralysed for longer.
The Eurozone economic calendar is quiet today, with just the producer price index, which measures inflation at wholesale level. However, the data is for February and so is considered out of date. The Euro will move to the tune of the US Dollar with important US macro data due later today.
3.5 Million Jobless Claims Expected
As the number of coronavirus cases continue to rise in the US, investors will turn their attention to today’s initial claims. Analyst are expecting another record-breaking figure after last week’s 3.3 million initial claims. The forecast for this week 3.5 million with some analysts even predicting 4.8 million. This would put the total filings for the past two weeks at 6.8 million, revealing the devastation that the coronavirus outbreak is having on the US labour market and the economy.
As each state goes into shutdown and demand for goods and services evaporates, these numbers are likely to increase. The earliest that the US economy is expected to reopen is the end of April. A large number of initial jobless claims would usually weigh on demand for the US dollar. However, in today’s climate the dollar is expected to rise on a poor reading as investors seek out the greenback for its safe haven properties.