U.S. Jobless claims remain in the millions
Another week saw more modest declines in the number of Americans filing for unemployment benefits. The number today was reported to be 1.5 million versus the expected 1.3 million.
Although the jobless claims have been on the decline on a week-to-week basis since the record number of claims in March, the speed of the decreases has slowed.
This comes as a second wave of layoffs has begun with some companies battling weaker levels of demand, which supports the Fed’s views that the economy faces a long and difficult recovery from the COVID-19 recession.
The main benchmark U.S. indices were slightly down on the news.
BOE keep rates unchanged, whilst expanding bond buying
On Thursday, the Bank of England decided to keep its benchmark interest rate at 0.1%.
This came as no surprise to the markets, as the majority of the world’s top central banks have recently opted to keep rates unchanged and opt for further stimulus and QE instead.
In continuing that trend, the BOE also announced it will expand its asset-purchasing programme by a further £100bn as part of efforts to tackle the impact of Covid-19 on the British economy.
IMF warns the contraction in the U.S. to worsen
On Thursday the IMF stated that they expect that the potential economic contraction in Q2 could be worse than many in the U.S. have forecasted.
The International Monetary Fund is set to release its updated World Economic Outlook on June 24, which will outline the full details of their forecasts.
Earlier projections in April had called for the U.S. economy to contract 5.9% in 2020, with a rebound to 4.7% growth in 2021.
“We want to perceive ourselves as winners, but successful traders are always focusing on their losses.”Peter Borish
USDZAR: rallied on Thursday as the crossover of the 10 day and 25 day moving averages continued to mature. The rate when up to as high as 17.50, after starting at 17.14
EURUSD: After breaking out of the recent floor of 1.12371, EURUSD continued its decline to as low as 1.11857 on Thursday.