Economy Euro goes up after soaring jobless claims in the...

Euro goes up after soaring jobless claims in the US

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Around 8:00 p.m. the euro gained 1.47% against the greenback at 1.1042 dollars.

The euro added to its gains against the dollar on Thursday after the release of US data showing a record increase in the number of unemployed claimants in the midst of a new coronavirus pandemic.

Around 7:00 p.m. GMT (8:00 p.m. in Paris), the euro gained 1.47% against the greenback, at 1.1042 dollars.

Weekly jobless claims have exploded in the United States, reaching an all-time high of 3.3 million claimants last week, according to figures released Thursday by the Labor Department. This is 3 million more than the previous week, an increase never seen before.

This figure is in the upper range of estimates as expectations ranged from 525,000 new job seekers in the United States to four million.

The previous record dates from 1982 and amounted to an additional 695,000 registrations.

These data, which bear witness to a very marked slowdown in economic activity by the world’s leading power, have weakened the greenback.

“Unfortunately, the employment situation is expected to worsen as the virus spreads across the United States,” said Oanda analyst Edward Moya.

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The European currency, for its part, benefited from the discussions of European leaders on the measures to be taken in the face of the pandemic.

“The euro seems to be gaining ground as we move towards a more coordinated and unified response from European policymakers to combat the negative impact of Covid-19 on the euro area economy,” said Lee Hardman, analyst for MUFG.

Nine European leaders, including Frenchman Emmanuel Macron and Italian Giuseppe Conte, have thus called for the creation of “corona bonds” – a loan common to the EU – in order to have significant funds in the face of the health crisis, in a letter addressed to the President of the European Council, Charles Michel, on Wednesday.

But, for the moment, Germany remains more than reluctant to such a device.

In addition, the Bank of England has chosen to keep its key interest rate at its historic low of 0.1%, deeming “probable” a “sharp fall” in world GDP in the first half.

The expected move allowed the pound to further gain, when it was already rising sharply against the dollar and, to a lesser extent, the euro.

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