Forex Update, Thursday, 13th of August, 2020
The US dollar has picked up from its recent 27-month low but the move lacks conviction and may fade lower due to increased political uncertainty. The latest US Jobs Report showed the economy adding 1.7 million jobs, with wages rising and the unemployment rate falling. All numbers beat expectations, but US unemployment is still over 10%, compared to 3.5% in February this year.
The second coronavirus relief bill is still being debated in Congress with both sides refusing to budge so far. Finding a solution is becoming more urgent as the clock ticks after the $600 a week unemployment relief package expired at the end of July. If the new package is passed, and it is eventually expected and potentially putting back downward pressure on the greenback.
Finally, the Top US and Chinese officials are due to hold a videoconference on Saturday to assess the Six-month implementation of the Phase 1 trade agreement.
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