MarketDeal24.Com – All major currencies, including EUR/USD, USD/JPY, lost value at the start of the New York session yesterday. This is how transactions take place throughout the morning. In the middle of the day, Senator Chuck Schmamer said Senate leader Mitch McConnell has agreed to begin talks on an stimulus package related to the corona virus. Investors have been very happy with the news and the stock market has gone up. The value of other major currencies, including the euro and sterling, has risen against the US dollar as the stock market has risen.
The Philadelphia Fed index and home sales report came in better than expected. Although manufacturing activity has been somewhat slower, it has been better than expected. Home sales reported an increase of 4.3% over the expected -1.2%. There is no doubt that the fourth quarter is going to be a lot harder for the United States. Traders are selling US dollars and everyone is assuming that this situation will continue for some more time. The New York government’s announcement to close schools has had a negative impact on the market. Meanwhile, restaurants may also be closed from next week.
The euro is the biggest gainer due to the weak position of the US dollar. Due to the strict restrictions of European governments, their corona infections have been greatly reduced. If they can bring the corona under control before Christmas and start their economic activity, the euro will appreciate more.
The European Union (EU) has announced that it will suspend Brexit talks after a member of the negotiation team was infected with the corona virus. As a result, the value of the pound has declined somewhat but has recovered again. The lockdown has started in Europe since October. So everyone is thinking that the economic reports of October and November will be bad.
All three commodity currencies were up in value at the end of the New York session. Canada’s retail sales report will be released today and is likely to do well as their labor market improves, leading to a further decline in the value of the USD/CAD. The Australian labor market report came in good, with 178,000 new jobs created last month where economists expected 30,000 jobs to be lost.