Home Forex 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 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

BCH is Now Available on Crypto.com Soft Staking

Crypto.com recently made a declaration that they have added Bitcoin Cash (BCH) to Crypto.com Soft Staking, which will enable Crypto.com Exchange users to enjoy...

Moonstake Partners with Ontology to Push Staking Growth

Moonstake Pte Ltd. is collaborating with Ontology, which is a high-performance public blockchain and distributed collaboration platform headquartered in Singapore. https://twitter.com/OntologyNetwork/status/1247047336322166786Moonstake primarily aims to develop...

Binance Lending Includes TRX and LTC as New Supported Assets

Binance Lending has announced the news about the entry of two new members to the list of supported assets on Flexible Deposits, i.e., Tron...

BitTorrent Products’ Usage Scales a New High in Q1

In big achievement for BitTorrent, the usage of its products has scaled a new high. Additionally, the products of BitTorrent have also accomplished several...

Metal Pay Adds Support to Binance USD (BUSD) on Its Marketplace

San Francisco-based leading crypto-focused payment settlement network, Metal Pay, has announced the news about the addition of one of the world’s most trusted stablecoin,...