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US Dollar Falls as Coronavirus Cases Surge

By Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

The US faces the risk of longer-run damage to the productive capacity of the economy as well as to the lives of those that have been affected by the spread of the coronavirus pandemic. 

CoronavirusThe US dollar dropped by 0.39 percent last week against a bundle of its main competitors, giving up last week's gains and closing the week at the 92.32 level.

The US Census Bureau also reported last week that retail sales went up by 0.3 percent in October (month-to-month), lower than analysts' expectations of 0.5 percent, and after advancing by 1.6 percent in the previous month. The retail sales control group went up by 0.1 percent in October, lower than analysts' expectations of 0.5 percent and after being at 0.9 percent in the previous month. Excluding the automobile sector, retail sales advanced by 0.2 percent in October, lower than analysts' forecast of 0.6 percent, and after being at 1.2 percent the previous month.

In monthly terms, industrial production went up by 1.1 percent in October, higher than the forecasted 1 percent and after shrinking by 0.4 percent in the previous month. The Import Price Index shrank by 0.1 percent in October, after going up by 0.2 percent in the previous month and lower than the forecasted 0.2 percent. The Export Price Index went up less than expected, gaining 0.2 percent and after going up by 0.6 percent in September.

Federal Reserve Chairman Jerome Powell commented that the economy we knew is probably a thing of the past, despite beginning the path towards economic recovery.

"We're recovering, but to a different economy," he said. “It will be one that is more leveraged to technology, and I worry that it’s going to make it even more difficult than it was for many workers.”

Powell highlighted the fact that the US faces the risk of longer-run damage to the productive capacity of the economy as well as to the lives of those that have been affected by the spread of the coronavirus pandemic. So far, 12,589,088 COVID-19 cases have been reported in the United States, as well as 262,701 total deaths. Since the beginning of the month, around 3 million new cases have been reported.

On Wednesday, building permits went up by 1.545 million, remaining unchanged from the previous month's figure and lower than expectations of 1.56 million. In monthly terms, housing starts stood at 1.53 million, higher than the previous month's 1.459 million and higher than the forecasted 1.46 million.

On Thursday, the US Department of Labor reported that initial jobless claims were at 742,000 in the week ending November 13, after being at 711,000 in the previous reporting period. The figure was higher than analysts' expectation of 707.000.

Joe Biden was declared the winner of the presidential election by the media networks, though President Donald Trump's legal team is claiming widespread election fraud. Georgia, one of the disputed states, already certified its election results though Trump's team has asked for a second recount, while Pennsylvania and Michigan are expected to certify their results this week.

Ibeth Rivero
About Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

 

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