Forex Dollar Weakens as Unemployment Claims Rise; Pound Recovers on BoE Comments

Forex Dollar weakens as US unemployment claims rise, pound recovers on Bank of England's comments. Stay updated on global currency trends with our news.

May 9, 2024 - 11:53
May 9, 2024 - 11:53
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Forex Dollar Weakens as Unemployment Claims Rise; Pound Recovers on BoE Comments
Forex Dollar Weakens as Unemployment Claims Rise; Pound Recovers on BoE Comments

The dollar faced a setback against most currencies on Monday as the number of unemployment claims in the US increased, signaling a softer job market. Meanwhile, the British pound bounced back from previous lows following remarks from the Bank of England.

Unemployment claims for the week exceeded expectations, indicating a weakening labor market. This comes after last week's disappointing US payrolls report and a decline in job openings.

Investors are closely watching upcoming data on consumer prices, producer prices, and retail sales to gauge the economy's direction.

The dollar index, which measures the dollar against major currencies, declined, while the euro strengthened. Similarly, the pound recovered from earlier lows against the dollar after the Bank of England hinted at a potential interest rate cut.

However, the dollar's decline against the Japanese yen was limited as it received support from hawkish comments by Bank of Japan members. Despite the initial strengthening of the yen, BOJ Governor Kazuo Ueda expressed concerns, indicating that the central bank would closely monitor the yen's value.

Despite efforts to stabilize the yen, investors remain cautious, awaiting further guidance from central banks.

Also Read: Dollar Nears Yearly High as Investors Await Fed's Policy Decision

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