Home Forex News Dollar Strengthens after a Better than Expected U.S. Job Data and Enhanced...

Dollar Strengthens after a Better than Expected U.S. Job Data and Enhanced Corona Concerns

The job market data that has been released today has helped the U.S. Dollar in gaining even more. The optimistic job data, coupled with weakened other currencies, seems to have worked well for the greenback. A major reason for a downturn in the other significant currencies is the threat from the Coronavirus.

The American job data has exceeded the past estimates, and especially it has made commendable improvement in the construction sector. The American economy seems to be in the right shape, whereas its primary competitor, China, is struggling with the impacts of Coronavirus.

The situation in China is worsening day by day. As per the official data, the total death toll has reached 908, and the number of infections rests above 40,000.

The Australian dollar is also struggling, and it has recently touched a new low at $0.6657. The New Zealand dollar has also been pulled down to $0.6397, the lowest over the last two months. The U.S. Dollar is also gaining its ground against the Euro that is at $1.0940, whereas the pound was at its four months low figure of $1.2890.

Rodrigo Catril, senior FX strategist at National Australia Bank in Sydney, said,

There is an overriding theme of US dollar strength against a backdrop where the data continues to suggest that the US economy is faring better than others, for now until we have more clarity on the coronavirus and its full impact on economic activity, it’s difficult to see the dollar coming under many challenges.

As the Chinese Lunar New Year eve is ending today after a week’s extension, China is expecting millions of people joining the workforce. Many of the major cities in China are increasingly deserted, and it is yet to ascertain how long the economy will take to bounce back.

China’s inflation data is likely to be released today, and the current condition of the Chinese economy may pose greater challenges for Chinese policymakers.

Ray Buckler
Ray is a journalist and completed his journalism. He has an experience of 5 years as a senior journalist. He can be reached by email: ray@forexnews.world.

Must Read

Buterin Reveals How He Burned Almost $7B Worth of Shiba Inu (SHIB)

Vitalik Buterin, a Co-Founder of Ethereum, spoke to the UpOnly podcast. He admitted to burning Shiba Inu tokens worth $7 billion. Vitalik Buterin burned...

Microstrategy CEO Won’t Sell $5 Billion in BTC Despite Crypto Winter

Despite the fact that the value of Bitcoin (BTC) has dropped by 40%, MicroStrategy's Michael Saylor has no plans to sell his $5 billion...

Ethereum Has One Obstacle to Fresh Highs, According to On-Chain Data

Ethereum is undoubtedly a big name in decentralized finance with a volume cap of nearly 400 billion dollars. The coin entered 2022 with the...

How to Buy Vechain and How It Works?: Beginner’s Guide

What Is Vechain? VeChain is a blockchain for businesses that aims to build "a trust-free and distributed business environment to enable transparent information flow, efficient...

Nevermind The Ripple Lawsuit: Digivault Becomes First Accredited Custodian To Support XRP

The year 2021 can barely be described for Cryptocurrency in words. The value undoubtedly increased compared to the previous three years, but it ended...