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U.S. Weekly Jobless Claims Hit 6.6 Million As COVID-19 Cases Climb

USD - United States Dollar

U.S. unemployment claims as a critical early marker of just how deep and widespread the economic impact of the COVID19 pandemic will be. Last week 3.3 million people filed for unemployment with another 3.3 million filling claims, today's release should weekly jobless claims hit 6.6 million. As the coronavirus brings both domestic economies and the global economy to a grinding halt, another poor unemployment read will only highlight the expense that lays before governments in supporting their citizenry through this unprecedented crisis.
The data published from the U.S. on Wednesday showed that the economic activity in the manufacturing sector contracted at a softer pace than expected with the ISM Manufacturing PMI coming in at 49.1 to beat analysts' estimate of 45. Meanwhile, the ADP's monthly National Employment Report showed that the private sector employment in March declined by 27K. However, the press release clarified that this reading was not reflecting the full impact of the coronavirus outbreak on the labor market as it was based on payroll records through the 12th of the month.

Key Movers

The risk-off shift help bolsters demand for the JPY and USD through trade on Wednesday as both currencies advanced near 1 percent against most other major counterparts. The USD remained well bid, doubling down on gains enjoyed through month-end re-balancing, edging upward across a variety of critical indices, while forcing the EUR back below 1.10.
Italy seems to plateau with its COVID-19 figures, but deaths in Spain and France have reached new highs placing pressure on the single currency. Italy and Germany have extended their movement restrictions to after Easter, and other countries may follow. The ECB is still trying to come up with a further fiscal measure to combat a stumbling economy, these could come in the form of 'corona bonds, but as of yet, we have no further details on these measures. EUR/USD moved lower during Wednesday's trade, and we open this morning at 1.0950.

Expected Ranges

EUR/USD: 1.0836 - 1.0964 ▼

GBP/USD: 1.2351 - 1.2475 ▼

USD/CAD: 1.4078 - 1.4298 ▲

AUD/USD: 0.6006 - 0.6119 ▼

NZD/USD: 0.5880 - 0.5973 ▼