US dollar pressed by unemployment data
US dollar edged lower in early European trading on May 8. A new wave of negative economic data pushed traders away from the American currency.
By 06:55 the US Dollar Index lost 0.1% and was at 99.775. EUR/USD gained 0.1% and reached 1.0838. GBP/USD earned 0.2% and reached 1.2386. USD/JPY earned 0/1% as well and reached 106.41.
May 7 initial claims data showed that 3.169 million of US citizens claimed unemployment benefits last week. That brings the total number of welfare seekers up to 33 million.The data caused the settlement of the Treasury yield at a new record low. The trading session closed on 0.129%.
Traders are now taking into account the possibility of Fed’s cuts of the interest rates under zero for the first time in history. Earlier the organization stated that it does not consider negative rates to be an “appropriate” measure. Yet the further economic reduction might force their hand.
Markets are also waiting for the new April employment data scheduled to release on 12:30 GMT. The report will cover the impact of the pandemic and containment measures on the workforce last month.