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John Wang
in
Forex
April 2 19:22

US unemployment drives the investors away from the dollar

The safe haven is being abandoned. 
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US dollar has lost some ground in European trading on April 2. Investors seem to be ready to leave the safe haven of the American currency and move to something more risky.
The US Dollar Index lost 0.1% and was at 99.640. EUR/USD dropped by 0.2% and ended up at 1.09. GBP/USD has been lifted by 0.3% and reached 1.24. USD/JPY also gained 0.1% and reached 107.28.
Job losses is the most recent factor, that might drive the investors to leave US dollar. The pandemic is already hitting the workforce and causing the closures of small businesses and termination of contract workers. Jobless claims in the US have risen to 3.28 million. The previous record of 695 000 has been set back in 1982.  The number is expected to grow by another 3.5 million.
The only cause for optimism in this situation is the stimulus bill, which is supposed to provide enough of financial resources for all impacted Americans.