by Viktor A 

July 16, 2021

It has been a tough year for the dollar forex market, as the US dollar slipped against both the euro and the most developed countries’ currencies, including the Canadian dollar and the Japanese yen. While it remains unclear what will happen with the US Federal Reserve in the near term, the central bank showed no signs of ending its policy of monetary tightening, which has led to the dollar’s decline.

Bitcoin’s price seems to be in a holding pattern for the time being, and it remains to be seen whether the Bitcoin price will continue to fall further in the near future. The Bitcoin market has been under pressure following the recent price drop, and this has affected the sentiment of the market. On the other hand, the sentiment of the US dollar remains steady as the market continues to remain bullish on the US dollar.

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  • Pound and euro rise slightly but remain under pressure
  • US unemployment reports in the crosshairs
  • Wall Street in the red even after impressive gains

The US dollar remains strong at the end of the week and concerns over inflation cloud market sentiment. This can be seen not only in the currency market, but also in the stock market. The euro and sterling rose from yesterday, but only marginally, and both currencies are also struggling with their own internal problems. New data on US jobless claims was also released today, and analysts’ expectations for a decline proved correct. This could provide a boost to Wall Street, where the major indexes opened lower despite still positive earnings data.

Strengthening of the dollar remains unchanged

The dollar remains strong today and the euro in particular is under pressure and is still below the important 1.19 mark, although it is trading lower. The support message from Fed Chairman Jerome Powell in yesterday’s speech provided much-needed support for the euro. Powell maintained his position on the economic recovery, particularly job creation, and did not change his mind on temporary spending cuts, with no current plans to change his bond purchases.

Despite the Fed’s dovish tone, the dollar did not fall completely. Those who trade in the foreign exchange market may have begun to take a more cautious stance even as support continues. The sharply rising inflation numbers are hard to ignore, even if Powell sticks to his program.

New low level of initial unemployment applications

In a sign of Powell’s optimism on employment, US jobless claims fell again this week. Initial applications for unemployment benefits fell to 360,000, 20,000 more than the previous week and a new low, according to data just released by the Department of Labor. This is a significant reduction, which is in line with expectations.

The number of continuing claims also fell by an impressive 120,000, leaving the total number above 3 million, but this is in line with the downward trend of recent weeks.

The excellent result ofdid not do the share price ofany good.

On Wall Street, earnings figures for the past quarter are coming in faster and faster and are generally impressive, especially at the big banks, including JP Morgan and Goldman Sachs. However, this has not prevented markets from remaining flat or slightly negative as overheating fears remain. All the major US indices are down this morning, with the NASDAQ the hardest hit. The Technology Growth Index shows that it is not only forex brokers who are observing a change in the market.

The Dow Jones index began the day with a drop of more than 100 points, but recovered and remained unchanged for the day. The focus was on Jerome Powell’s new testimony today and whether he will provide further information that could affect the market.

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Viktor A

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