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Market View

US market still positive after new Jobless Claims release

Thursday, May 7, 2020 4:07 PM GMT

Jobless Claims were just released and the trend remains heavily negative. 3.2 million jobless claims were filed last week and the total number reached 33 million for the last 7-weeks. California, Texas, Georgia, and New York had the biggest increases. Now, analysts are expecting the new employment rate and are anticipating a discount of 15% or even higher. 

Nevertheless, the US market holds its gains with SP500 rising 1.32%, NAS100 1.44%, and Dow Jones (US30) 1.01%. BOE voted unanimously to maintain Bank Rate at 0.1%. Also, they reported “The spread of Covid-19 and the measures to contain it are having a significant impact on the United Kingdom and many countries around the world.  Activity has fallen sharply since the beginning of the year and unemployment has risen markedly”. According to the Bank’s Decision Maker Panel, “companies’ sales are expected to be around 45% lower than normal in 2020 Q2 and business investment 50% lower”.  On the other hand, China’s exports rose by 3.5% in April. This took by surprise the Investors. Additionally, there are some rumors that Japan has approved remdesivir of Gilead Sciences (GILD) for COVID-19 treatment.

Heading to the forex market, EURUSD is testing the violated and declining trendline for a second day. RSI (5) is oversold and sellers look tired currently. GBPUSD is also testing a trendline that acts as support but the daily price action looks bearish below the 20SMA. GBPJPY closed finally below the support and is testing it from below. USDJPY continues the bearish move however RSI (5) forms a short-term positive divergence.

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EURUSD daily chart

GBPUSD daily chart

GBPJPY daily chart

USDJPY daily chart

Checking the ZuluTrade’s Traders Sentiment, the community is buying GBPJPY while is selling EURUSD, GBPUSD, USDJPY, and USDCAD.

In focus today (economic calendar):

EuropeanMonetaryUnion - ECB's President Lagarde speech

 

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The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

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