Foreign Exchange Update 10th August 2020
The British Pound to USD was trading below the 1.31 mark at the start of the week, in attempt to recover from the American dollar’s increase. Traders are looking at the release of June’s unemployment figures that could reverse the pair’s direction if they beat expectations.
The pair opened the market at 1.3074, seeing a daily change of 22 pips. UK jobs data could be affected once the British government’s £33.8 billion furlough scheme ends in October.
The National Institute of Economic and Social Research pointed out that unemployment numbers could go over three million if the scheme if stopped prematurely, pushing the UK jobless numbers by 10% by the end of 2020.
Moreover, the EUR/USD was impacted by the 1.763 million rise in non-farm payrolls, dropping from the 1.1800 handle. The pair trades at 1.1750, affected by upbeat U.S. unemployment figures and worsening Sino-American tensions.
Washington remains undecided on the additional coronavirus support package, leading the U.S. President to sign off an executive order for better unemployment payments for millions of unemployed American citizens.
Reuters reports that the unemployed will receive an extra $400 per week in benefits.
On Monday, the Eurozone’s Sentix Investor Confidence gauge increased to -13.4, exceeding forecasts which predicted -15.2 points.