The financial markets worldwide are taking an exciting turn. Various markets show different trends, but the clear winner is Dollar, registering a third straight day appreciation in the market. Although the dollar value is still way below its golden days, there is little doubt about the fact that the currency is rebounding.
The latest impetus to the Dollar’s value has come from the job data in the States in which the number of jobless people has come down below the one million marks. Mind you, it is only the second time, since the pandemic came into force, that US data revealed jobless claims less than one million.
Finer Details
The overall global economic scenario is still dominated by the strong Euro and ongoing trade and currency wars, but what has come to the rescue of the markets is the fact that the US Federal Reserve is going to keep interest rates low at least for the near future. This is undoubtedly positive news for the bulls in the market and signals a positive future indicator.
There are some contrasting developments, such as a sell-off in technology stocks, but that did not impact the growth prospects of Dollar value. Gold, on the other hand, is struggling to find support among the investors, and sentiments in the oil market are also not very bright, although crude found some support lately while settling at around $43.76.
It is also important to note that CAD is holding on its own even though it was not a participating currency in the foreign exchange rally against the USD. Euro has suffered its third-consecutive decline in the market since mid-June, which has helped the USD register strong growth since its high levels registered in May.
Conclusion
It will be interesting to witness the movement of currencies. As per forex important news, the NFP report is expected to have an instrumental impact on the fiat currencies’ value in the medium to long term. Times ahead are quite turbulent, and this uncertainty adds to both the excitement and nervousness of financial investors at the same time.
