Dollar trades mixed amid risk aversion, euro bounces off new ECB inflation target: July 09, 2021

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The greenback traded mixed against its peers, with a massive sell-off in global equities triggering the purchase of safe-haven jpy stocks. Elsewhere, the euro has generally recovered, with the European Central Bank setting a new inflation target.

Reuters reported that the number of Americans filing new jobless claims increased unexpectedly last week, indicating that the labor market recovery from the COVID-19 pandemic continues to be choppy. Initial claims for state unemployment benefits rose from 2,000 to 373,000 seasonally adjusted for the week ended July 3, the Labor Department said Thursday. Economists polled by Reuters had forecast 350,000 candidates for last week.

Against the Japanese yen, the dollar met a further sell off at 110.70 in Australia and fell to 109.76 in the European morning following active safe-haven jpy purchases due to a massive sell-off in global equities . The pair then edged down to a nearly one-month low at 109.54 on the New York morning before rebounding to 109.86.

The single currency remained under pressure in Australia and fell to a session low of 1.1784 in the Asian morning. However, the pair then hit an intra-day high at 1.1864 in the New York morning as the ECB set a new inflation target and in part due to euro cross-buying, particularly against the pound, before stabilizing.

Reuters news, the European Central Bank on Thursday set a new inflation target and carved out a major role in the fight against climate change, as Europe’s most powerful financial institution embarked on the biggest overhaul in its 23-year history.
With inflation below its target for nearly a decade, ECB President Christine Lagarde plunged for 18 months into the internal workings of the bank, questioning even the fundamentals of the central bank in the hope to reset the strategy and build credibility. “We know that 2% will not be constantly on target, there could be a moderate and temporary deviation in either direction of that 2%. And that’s okay,” Lagarde said at a conference. press to present the exam.

The British pound met a new sell off at 1.3806 in Australia and fell to 1.3775 in the Asian morning, then fell to 1.3761 in the European early morning. Despite rebounding to 1.3793, price fell to a session low of 1.3742 in New York, opened on sterling cross-sells before staging a rally to 1.3797 in the New York morning. York. The pair then fell back to 1.3755 before rising to 1.3791 near the New York close.

Data to be released on Friday:

China PPI, CPI, UK GDP, industrial production, manufacturing production, construction production, trade balance, Italian industrial production, change in employment in Canada, unemployment rate, wholesale stocks in the United States and sales basically.

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